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Digital Turbine (APPS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Digital Turbine (APPS) closed at $6.30 in the latest trading session, marking a +1.69% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 1.02%.

Coming into today, shares of the mobile software company had lost 3.05% in the past month. In that same time, the Computer and Technology sector lost 2.58%, while the S&P 500 lost 2.74%.

APPS will be looking to display strength as it nears its next earnings release. On that day, APPS is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.55 million, up 32.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.20 per share and revenue of $130.89 million, which would represent changes of +150% and +26.37%, respectively, from the prior year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 currently has a Zacks Rank of #2 (Buy).

Digging into valuation, APPS currently has a Forward P/E ratio of 30.98. Its industry sports an average Forward P/E of 54.39, so we one might conclude that APPS is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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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