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AppLovin (APP) Advances While Market Declines: Some Information for Investors

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The latest trading session saw AppLovin (APP - Free Report) ending at $158.95, denoting a +0.06% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.18%.

Coming into today, shares of the mobile app technology company had gained 25.95% in the past month. In that same time, the Business Services sector gained 3.48%, while the S&P 500 gained 2.76%.

The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. The company is slated to reveal its earnings on November 6, 2024. The company is forecasted to report an EPS of $0.96, showcasing a 220% upward movement from the corresponding quarter of the prior year. 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.

Investors might also notice recent changes to analyst estimates 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% downward. AppLovin presently features a Zacks Rank of #3 (Hold).

In terms of valuation, AppLovin is currently trading at a Forward P/E ratio of 45.96. This indicates a premium in contrast to its industry's Forward P/E of 25.78.

It's also important to note that APP currently trades at a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Technology Services stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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.

To follow APP in the coming trading sessions, be sure to utilize Zacks.com.


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