Strength Seen in AppFolio (APPF): Can Its 3.9% Jump Turn into More Strength?
AppFolio APPF shares soared 3.9% in the last trading session to close at $174.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.9% loss over the past four weeks.
The increase in share price can be attributed to robust demand environment for the company’s diversified product portfolio. Strength in its diversified digital service offerings that include a leasing marketplace, a selling marketplace, sales comparable information, decision support, contact management, tenant information, property marketing, and industry news services, holds promise.
This property management software maker is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +1500%. Revenues are expected to be $162.64 million, up 31.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For AppFolio, the consensus EPS estimate for the quarter has been revised 2.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on APPF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
AppFolio is a member of the Zacks Internet - Software industry. One other stock in the same industry, Atlassian TEAM, finished the last trading session 0.1% lower at $235.30. TEAM has returned 18.6% over the past month.
For Atlassian , the consensus EPS estimate for the upcoming report has changed -31.3% over the past month to $0.61. This represents a change of +35.6% from what the company reported a year ago. Atlassian currently has a Zacks Rank of #2 (Buy).
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