May 18, 2022

The Digital Turbine (APPS) Dips More Than Larger Markets: What You Need to Know


Digital Turbine (APPS) closed at $ 54.63 on the last trading session, marking a movement of -1.94% from the previous day. This change was smaller than the S&P 500’s 0.1% loss on the day. Meanwhile, the Dow Jones lost 0.47% and the Nasdaq, an index with a strong technology component, lost 0.47%.

As of today, shares of the mobile software company had lost 3.16% in the past month. At the same time, the IT and tech sector lost 1%, while the S&P 500 gained 3.67%.

Investors are hopeful that Digital Turbine will gain strength as its next earnings release approaches. In this report, analysts expect Digital Turbine to post earnings of $ 0.43 per share. That would mark year-over-year growth of 104.76%. Our most recent consensus estimate projects quarterly revenue of $ 353.1 million, up 298.57% from the previous year.

Zacks’ consensus estimates for the full year of APPS project earnings of $ 1.58 per share and revenue of $ 1.2 billion. These results would represent year-over-year variations of + 113.51% and + 283.79%, respectively.

Any recent changes in analysts’ estimates for Digital Turbine should also be noted by investors. These revisions help show the ever-changing nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.

Our research shows that these changes in estimate are directly correlated with short-term stock prices. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

Zacks’ ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive record of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus EPS forecast has remained stagnant. Digital Turbine currently holds a Zacks rank of # 3 (Hold).

Investors should also note Digital Turbine’s current valuation metrics, including its forward P / E ratio of 35.26. Its industry has an average term P / E of 57.51, so one could conclude that Digital Turbine is trading at a comparatively discount.

Meanwhile, APPS’s PEG ratio is currently 0.71. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Internet – Software held an average PEG ratio of 3.12 at yesterday’s closing price.

The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, which places it in the bottom 30% of the 250+ industries.

The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock market metrics and more on Zacks.com.

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Digital Turbine, Inc. (APPS): Free Stock Analysis Report

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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.