In the latest trading session, AppFolio (APPF) closed at $230.28, marking a +1.3% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
Prior to today's trading, shares of the property management software maker had gained 7.65% outpaced the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.
Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.28, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $230.3 million, indicating a 16.68% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.14 per share and revenue of $930.84 million, which would represent changes of +17.62% and +17.2%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for AppFolio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.84% lower. AppFolio is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 44.25. Its industry sports an average Forward P/E of 28.15, so one might conclude that AppFolio is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AppFolio, Inc. (APPF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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