The most recent trading session ended with AppLovin (APP) standing at $375.72, reflecting a -1.29% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 1.36%.
Prior to today's trading, shares of the mobile app technology company had gained 15.62% over the past month. This has outpaced the Business Services sector's gain of 8.87% and the S&P 500's gain of 1.86% in that time.
The upcoming earnings release of AppLovin will be of great interest to investors. The company's earnings report is expected on February 12, 2025. The company is forecasted to report an EPS of $1.28, showcasing a 161.22% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.26 billion, indicating a 32.32% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 3.35% rise in the Zacks Consensus EPS estimate. Currently, AppLovin is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, AppLovin is currently exchanging hands at a Forward P/E ratio of 61.98. For comparison, its industry has an average Forward P/E of 24.4, which means AppLovin is trading at a premium to the group.
It is also worth noting that APP currently has a PEG ratio of 3.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.61.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
