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Why the Market Dipped But AppLovin (APP) Gained Today
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AppLovin (APP - Free Report) closed the latest trading day at $366.34, indicating a +1.55% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.51%.
The mobile app technology company's shares have seen an increase of 11.4% over the last month, surpassing the Business Services sector's gain of 3.17% and the S&P 500's gain of 1.67%.
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 February 12, 2025. It is anticipated that the company will report an EPS of $1.28, marking a 161.22% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 32.32% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AppLovin. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 4.49% higher. Currently, AppLovin is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, AppLovin is holding a Forward P/E ratio of 58.58. Its industry sports an average Forward P/E of 23.43, so one might conclude that AppLovin is trading at a premium comparatively.
It's also important to note that APP currently trades at a PEG ratio of 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Why the Market Dipped But AppLovin (APP) Gained Today
AppLovin (APP - Free Report) closed the latest trading day at $366.34, indicating a +1.55% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.51%.
The mobile app technology company's shares have seen an increase of 11.4% over the last month, surpassing the Business Services sector's gain of 3.17% and the S&P 500's gain of 1.67%.
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 February 12, 2025. It is anticipated that the company will report an EPS of $1.28, marking a 161.22% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 32.32% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AppLovin. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 4.49% higher. Currently, AppLovin is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, AppLovin is holding a Forward P/E ratio of 58.58. Its industry sports an average Forward P/E of 23.43, so one might conclude that AppLovin is trading at a premium comparatively.
It's also important to note that APP currently trades at a PEG ratio of 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.