AppLovin (APP) Soars 4.5%: Is Further Upside Left in the Stock?

AppLovin (APP) shares ended the last trading session 4.5% higher at $649.59. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 48.4% gain over the past four weeks.

The stock rallied as investors positioned ahead of its official inclusion in the S&P 500.

This mobile app technology company is expected to post quarterly earnings of $2.34 per share in its upcoming report, which represents a year-over-year change of +87.2%. Revenues are expected to be $1.34 billion, up 11.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For AppLovin, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on APP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

AppLovin is a member of the Zacks Technology Services industry. One other stock in the same industry, CoreCard Corporation (CCRD), finished the last trading session 2.2% lower at $26.97. CCRD has returned 2.2% over the past month.

For CoreCard, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. This represents a change of -3.3% from what the company reported a year ago. CoreCard currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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