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AppFolio (APPF) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw AppFolio (APPF - Free Report) ending at $253.75, denoting a -0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.83%.

The property management software maker's shares have seen an increase of 22.59% over the last month, surpassing the Computer and Technology sector's gain of 0.44% and the S&P 500's gain of 3.11%.

The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. The company's upcoming EPS is projected at $0.96, signifying a 9.09% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $200.01 million, indicating a 16.4% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.41 per share and a revenue of $790.55 million, representing changes of +157.89% and +27.42%, respectively, from the prior year.

Any recent changes to analyst estimates for AppFolio should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1% higher. AppFolio is holding a Zacks Rank of #2 (Buy) right now.

From a valuation perspective, AppFolio is currently exchanging hands at a Forward P/E ratio of 57.73. This expresses a premium compared to the average Forward P/E of 33.11 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% 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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