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

Digital Turbine (APPS) closed at $3.50 in the latest trading session, marking a -1.96% move from the prior day. This change lagged the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the mobile software company had gained 0.56% over the past month, lagging the Computer and Technology sector's gain of 4.13% and the S&P 500's gain of 3.16% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release. On that day, APPS is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $26.55 million, up 26.67% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for APPS. Recent revisions tend to reflect the latest 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 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 currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, APPS is holding a Forward P/E ratio of 30.6. Its industry sports an average Forward P/E of 55.69, so we one might conclude that APPS is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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