AppLovin (APP) closed the most recent trading day at $733.60, moving +1.7% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.52%.
The mobile app technology company's stock has climbed by 38.66% in the past month, exceeding the Business Services sector's gain of 7.31% and the S&P 500's gain of 3%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company's upcoming EPS is projected at $2.89, signifying a 67.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.6 billion, up 16.86% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.32 per share and a revenue of $5.57 billion, representing changes of +105.74% and +18.2%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, AppLovin is currently exchanging hands at a Forward P/E ratio of 77.43. This indicates a premium in contrast to its industry's Forward P/E of 19.15.
Meanwhile, APP's PEG ratio is currently 3.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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