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

Zacks Equity Research
·2 mins read

In the latest trading session, Digital Turbine (APPS) closed at $5.36, marking a +1.9% move from the previous day. This move lagged the S&P 500's daily gain of 2.29%. Elsewhere, the Dow gained 1.99%, while the tech-heavy Nasdaq added 2.81%.

Coming into today, shares of the mobile software company had gained 23.18% in the past month. In that same time, the Computer and Technology sector gained 16.75%, while the S&P 500 gained 19.13%.

Wall Street will be looking for positivity from APPS as it approaches its next earnings report date. On that day, APPS is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.40 million, up 41.21% from the year-ago period.

Investors should also note any recent changes to analyst estimates for APPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. APPS is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, APPS is currently trading at a Forward P/E ratio of 13.72. This represents a discount compared to its industry's average Forward P/E of 41.19.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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