AppFolio (APPF) Exceeds Market Returns: Some Facts to Consider

By Zacks Equity Research | October 24, 2025, 6:00 PM

AppFolio (APPF) ended the recent trading session at $242.68, demonstrating a +1.31% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.79%. On the other hand, the Dow registered a gain of 1.01%, and the technology-centric Nasdaq increased by 1.15%.

Prior to today's trading, shares of the property management software maker had lost 13.2% lagged the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.

Market participants will be closely following the financial results of AppFolio in its upcoming release. The company plans to announce its earnings on October 30, 2025. The company is expected to report EPS of $1.45, up 11.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $245.62 million, indicating a 19.39% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.36 per share and revenue of $942.91 million. These totals would mark changes of +22.65% and +18.72%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, AppFolio is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AppFolio has a Forward P/E ratio of 44.69 right now. Its industry sports an average Forward P/E of 29.93, so one might conclude that AppFolio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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