AppLovin (APP) ended the recent trading session at $288.88, demonstrating a +1.37% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.
Heading into today, shares of the mobile app technology company had gained 7.55% over the past month, outpacing the Business Services sector's loss of 2.56% and the S&P 500's loss of 0.84% in that time.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on May 7, 2025. It is anticipated that the company will report an EPS of $1.45, marking a 116.42% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.38 billion, indicating a 30.22% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.68 per share and a revenue of $5.59 billion, representing changes of +47.46% and +18.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.7% lower. At present, AppLovin boasts a Zacks Rank of #3 (Hold).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 42.65. Its industry sports an average Forward P/E of 17.15, so one might conclude that AppLovin is trading at a premium comparatively.
We can also see that APP currently has a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.47 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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