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

Zacks Equity Research

Digital Turbine (APPS) closed at $5.22 in the latest trading session, marking a -0.38% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 1.11%.

Heading into today, shares of the mobile software company had gained 3.56% over the past month, lagging the Computer and Technology sector's gain of 4.95% and outpacing the S&P 500's gain of 3.18% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release, which is expected to be August 5, 2019. In that report, analysts expect APPS to post earnings of $0.02 per share. This would mark year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $28.39 million, up 28.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $126.39 million, which would represent changes of +62.5% and +22.04%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for APPS. These revisions help to show the ever-changing nature of near-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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note APPS's current valuation metrics, including its Forward P/E ratio of 41.37. This valuation marks a discount compared to its industry's average Forward P/E of 65.55.

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 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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