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

Zacks Equity Research
·3 min read

In the latest trading session, Digital Turbine (APPS) closed at $52.11, marking a +1.05% move from the previous day. This change outpaced the S&P 500's 0.55% gain on the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.03%.

Coming into today, shares of the mobile software company had gained 20.83% in the past month. In that same time, the Computer and Technology sector gained 2.96%, while the S&P 500 gained 3.13%.

Investors will be hoping for strength from APPS as it approaches its next earnings release. On that day, APPS is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 240%. Meanwhile, our latest consensus estimate is calling for revenue of $75.33 million, up 109.14% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.63 per share and revenue of $283.08 million, which would represent changes of +215% and +104.07%, respectively, from the prior year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, APPS is currently trading at a Forward P/E ratio of 81.86. This represents a discount compared to its industry's average Forward P/E of 83.08.

Also, we should mention that APPS has a PEG ratio of 1.64. 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. APPS's industry had an average PEG ratio of 4.26 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 187, putting it in the bottom 27% 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.

To follow APPS in the coming trading sessions, be sure to utilize Zacks.com.


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