In the latest trading session, Digital Turbine (APPS) closed at $48.73, marking a +1.48% move from the previous day. This move outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.5%.
Prior to today's trading, shares of the mobile software company had gained 30.6% over the past month. This has outpaced the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 3.22% in that time.
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 $0.17 per share, which would represent year-over-year growth of 240%. Our most recent consensus estimate is calling for quarterly revenue of $75.33 million, up 109.14% from the year-ago period.
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 revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.35% higher. APPS currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, APPS is holding a Forward P/E ratio of 76.22. For comparison, its industry has an average Forward P/E of 76.8, which means APPS is trading at a discount to the group.
It is also worth noting that APPS currently has a PEG ratio of 1.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 5.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.
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