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Applied Digital Corporation (APLD) Gains As Market Dips: What You Should Know

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Applied Digital Corporation (APLD - Free Report) closed at $5.64 in the latest trading session, marking a +1.26% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 1.06%.

Heading into today, shares of the company had lost 26.52% over the past month, lagging the Finance sector's loss of 1.75% and the S&P 500's gain of 0.58% in that time.

Applied Digital Corporation will be looking to display strength as it nears 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. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Applied Digital Corporation is currently a Zacks Rank #3 (Hold).

In terms of valuation, Applied Digital Corporation is currently trading at a Forward P/E ratio of 13.59. This valuation marks a premium compared to its industry's average Forward P/E of 10.31.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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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