Digital Turbine (APPS) closed at $7.88 in the latest trading session, marking a +1.68% move from the prior day. This change outpaced the S&P 500’s 0.02% loss on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.08%.
Prior to today’s trading, shares of the mobile software company had lost 4.08% over the past month. This has lagged the Computer and Technology sector’s gain of 4.7% and the S&P 500’s gain of 3.81% in that time.
APPS will be looking to display strength as it nears its next earnings release. On that day, APPS is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $37.58 million, up 23.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $133.89 million. These totals would mark changes of +162.5% and +29.27%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for APPS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. APPS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that APPS has a Forward P/E ratio of 37.81 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 59.82.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.
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.
To follow APPS in the coming trading sessions, be sure to utilize Zacks.com.
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