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AppLovin (APP) Declines More Than Market: Some Information for Investors

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AppLovin (APP - Free Report) closed the most recent trading day at $143.81, moving -1.03% from the previous trading session. This change lagged the S&P 500's 0.76% loss on the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 1.01%.

Shares of the mobile app technology company have appreciated by 24.99% over the course of the past month, outperforming the Business Services sector's gain of 3.52% and the S&P 500's gain of 4.31%.

The upcoming earnings release of AppLovin will be of great interest to investors. The company's earnings report is expected on November 6, 2024. On that day, AppLovin is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 220%. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 30.65% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $4.44 billion, which would represent changes of +253.06% and +35.18%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AppLovin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, AppLovin is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 41.95. This signifies a premium in comparison to the average Forward P/E of 26.69 for its industry.

It is also worth noting that APP currently has a PEG ratio of 2.1. 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. APP's industry had an average PEG ratio of 1.59 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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