Digital Turbine (APPS) closed at $52.95 in the latest trading session, marking a -1.14% move from the prior day. This move lagged the S&P 500’s daily gain of 0.28%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the mobile software company had gained 6.16% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 gained 0.12%.
Digital Turbine will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, up 104.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $353.1 million, up 298.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $1.2 billion, which would represent changes of +113.51% and +283.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Digital Turbine. 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 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Digital Turbine currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Digital Turbine is holding a Forward P/E ratio of 33.9. For comparison, its industry has an average Forward P/E of 57.18, which means Digital Turbine is trading at a discount to the group.
It is also worth noting that APPS currently has a PEG ratio of 0.68. 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. Internet – Software stocks are, on average, holding a PEG ratio of 3.02 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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