AppLovin (APP) closed the most recent trading day at $364.49, moving -4.23% from the previous trading session. This change lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%.
The stock of mobile app technology company has risen by 3.81% in the past month, leading the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company is expected to report EPS of $2.01, up 125.84% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.4 billion, reflecting a 29.6% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.41 per share and revenue of $5.72 billion, which would represent changes of +85.65% and +21.48%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has shifted 0.19% upward. Currently, AppLovin is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 45.26. This signifies a premium in comparison to the average Forward P/E of 20.43 for its industry.
We can additionally observe that APP currently boasts a PEG ratio of 2.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.44.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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