Digital Turbine (APPS) Stock Sinks As Market Gains: What You Should Know
Digital Turbine (APPS) closed at $16.58 in the latest trading session, marking a -0.96% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Heading into today, shares of the mobile software company had gained 0.72% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and lagging the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Digital Turbine as it approaches its next earnings report date. The company is expected to report EPS of $0.37, down 24.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $186.22 million, down 50.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $721.38 million, which would represent changes of -15.66% and -33.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Digital Turbine. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Digital Turbine is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Digital Turbine is holding a Forward P/E ratio of 11.93. This represents a discount compared to its industry's average Forward P/E of 41.39.
Also, we should mention that APPS has a PEG ratio of 0.86. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
