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AppFolio (APPF) Hits 52-Week High on Solid Growth Factors

Zacks Equity Research

Share price of AppFolio, Inc. APPF rallied to a new 52-week high of $27.50 on Mar 30, eventually closing the day’s session at the same level. This represents a strong one-year return of 125.6% way ahead of the Zacks classified Internet – Software industry’s gain of 12.8%.

Currently, AppFolio carries a Zacks Rank #3 (Hold). Notably, the company has a market cap of $882.2 million.

What’s Driving the Stock?

AppFolio offers cloud-based software solutions for property management and legal industries. Last month, the company reported its fourth-quarter 2016 results wherein both revenues and earnings posted a beat as compared to the Zacks Consensus Estimate. Additionally, management provided a strong guidance for full-year 2017.

The better-than-expected results on a year-over-year basis were driven by robust subscription growth resulting from new additions of large customers, improving operating margins and strong adoptions of the company’s Value+ services.

AppFolio continues to see robust customer growth in the property management and legal space. In fact, the company’s software solutions that are targeted toward property management professionals are helping the company to further leverage its cloud-based business software solutions.

However, intensifying competition in the cloud based business software solutions space remains a concern for the company.

Estimate Revisions

The Zacks Consensus Estimate for AppFolio’s current quarter and current year has remained stable at a loss of 7 cents and 22 cents per share, respectively, over the last seven days.

Key Sector Picks

Some stocks worth considering in the broader technology space include Square, Inc. SQ, Zendesk, Inc. ZEN and j2 Global, Inc. JCOM, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the consensus estimate for Square’s current year has narrowed down to a loss of 25 cents from a loss of 33 cents over the last 60 days.

Similarly, the consensus estimate for Zendesk’s current year has narrowed down to a loss of 99 cents from a loss of $1.22 over the last 60 days.

Last but not the least, the consensus estimate for j2 Global’s current year has improved to $5.59 from $5.17 over the last 60 days.

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