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

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Digital Turbine (APPS) closed the most recent trading day at $66.38, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.12%.

Heading into today, shares of the mobile software company had lost 10.89% over the past month, lagging the Computer and Technology sector's loss of 2.07% and the S&P 500's gain of 0.33% in that time.

Wall Street will be looking for positivity from APPS as it approaches its next earnings report date. This is expected to be June 1, 2021. The company is expected to report EPS of $0.22, up 340% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95.1 million, up 141.68% from the year-ago period.

It is also important to note the 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. 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, 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 has moved 38.16% higher within the past month. APPS is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note APPS's current valuation metrics, including its Forward P/E ratio of 57.02. Its industry sports an average Forward P/E of 69.17, so we one might conclude that APPS is trading at a discount comparatively.

Investors should also note that APPS has a PEG ratio of 1.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.27 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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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