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Applied Digital Corporation (APLD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Applied Digital Corporation (APLD - Free Report) closed at $6.44, marking a -1.91% move from the previous day. This change lagged the S&P 500's 0.76% loss on the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 1.15%.

Heading into today, shares of the company had lost 18.41% over the past month, lagging the Finance sector's loss of 0.44% and the S&P 500's loss of 1.4% in that time.

Investors will be hoping for strength from Applied Digital Corporation as it approaches its next earnings release. In that report, analysts expect Applied Digital Corporation to post earnings of -$0.01 per share. This would mark year-over-year growth of 80%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.05 million, up 507.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.41 per share and revenue of $376.47 million, which would represent changes of +183.67% and +579.65%, respectively, from the prior year.

Any recent changes to analyst estimates for Applied Digital Corporation should also be noted by investors. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.82% higher within the past month. Applied Digital Corporation is currently a Zacks Rank #3 (Hold).

Investors should also note Applied Digital Corporation's current valuation metrics, including its Forward P/E ratio of 16. This represents a premium compared to its industry's average Forward P/E of 10.76.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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 APLD in the coming trading sessions, be sure to utilize Zacks.com.


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