AppLovin (APP) closed the most recent trading day at $532.53, moving -5.83% from the previous trading session. This change lagged the S&P 500's 1.16% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.18%.
Heading into today, shares of the mobile app technology company had lost 22.37% over the past month, lagging the Business Services sector's loss of 3.02% and the S&P 500's loss of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings report is set to go public on February 11, 2026. It is anticipated that the company will report an EPS of $2.89, marking a 67.05% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.6 billion, reflecting a 16.86% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.32 per share and a revenue of $5.57 billion, indicating changes of +105.74% and 0%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for AppLovin. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Currently, AppLovin is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 37.34. This represents a premium compared to its industry average Forward P/E of 16.25.
We can also see that APP currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.5 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 31% of over 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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