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Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Digital Turbine (APPS) closed at $7.80, marking a -1.02% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Prior to today's trading, shares of the mobile software company had lost 6.08% over the past month. This has lagged the Computer and Technology sector's gain of 2.54% and the S&P 500's gain of 2.48% in that time.

APPS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.06, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.58 million, up 23.58% from the year-ago period.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $0.21 per share and revenue of $133.89 million. These results would represent year-over-year changes of +162.5% and +29.27%, respectively.

Any recent changes to analyst estimates for APPS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. APPS currently has a Zacks Rank of #3 (Hold).

In terms of valuation, APPS is currently trading at a Forward P/E ratio of 38.44. This represents a discount compared to its industry's average Forward P/E of 60.53.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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