Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Digital Turbine (APPS) closed at $7.16, marking a -0.97% move from the previous day. This change lagged the S&P 500's 0.9% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.93%.

Prior to today's trading, shares of the mobile software company had lost 10.52% over the past month. This has lagged the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 3.3% in that time.

APPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect APPS to post earnings of $0.06 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.58 million, up 23.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $133.89 million, which would represent changes of +162.5% and +29.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for APPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 remained stagnant. APPS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that APPS has a Forward P/E ratio of 35.27 right now. For comparison, its industry has an average Forward P/E of 58.06, which means APPS is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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