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AppFolio (APPF) Advances But Underperforms Market: Key Facts

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AppFolio (APPF - Free Report) closed the latest trading day at $226.53, indicating a +0.11% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.

The property management software maker's shares have seen an increase of 0.19% over the last month, not keeping up with the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.

Investors will be eagerly watching for the performance of AppFolio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 24, 2024. It is anticipated that the company will report an EPS of $1.02, marking a 72.88% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $198.52 million, up 20% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $4.20 per share and a revenue of $777.91 million, demonstrating changes of +145.61% and +25.38%, respectively, from the preceding year.

Any recent changes to analyst estimates for AppFolio should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppFolio is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AppFolio currently has a Forward P/E ratio of 53.9. This signifies a premium in comparison to the average Forward P/E of 31.76 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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