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Digital Turbine (APPS) Gains But Lags Market: What You Should Know

·3 min read

Digital Turbine (APPS) closed the most recent trading day at $84.19, moving +0.6% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.71%.

Coming into today, shares of the mobile software company had gained 34.33% in the past month. In that same time, the Computer and Technology sector lost 4.5%, while the S&P 500 lost 2.25%.

APPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect APPS to post earnings of $0.39 per share. This would mark year-over-year growth of 160%. Meanwhile, our latest consensus estimate is calling for revenue of $304 million, up 328.83% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.66 per share and revenue of $1.18 billion, which would represent changes of +124.32% and +277.12%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for APPS. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, APPS is holding a Forward P/E ratio of 50.42. This valuation marks a discount compared to its industry's average Forward P/E of 60.64.

Investors should also note that APPS has a PEG ratio of 1.01 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 4.19 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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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