Digital Turbine (APPS) closed the last day of trading at $13.31, down -0.22% from the previous trading session. This change was narrower than the S&P 500’s 0.33% loss on the day. Meanwhile, the Dow Jones lost 0.1% and the tech-heavy Nasdaq lost 0.25%.
Prior to today’s session, shares of the mobile software company were down 26.38% in the past month. This was lower than the IT & Technology sector’s 14.71% loss and the S&P 500’s 11.67% loss during this period.
Investors are hoping for strength from Digital Turbine as it nears its next earnings release. The company is expected to post EPS of $0.32, down 27.27% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $173.67 million, down 44.02% from the prior year quarter.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $742.47 million. These totals would mark changes of -17.47% and -31.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Digital Turbine. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated to short-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has fallen 4.9% over the past month. Digital Turbine currently sports a Zacks ranking of #5 (high selling).
Valuation is also important, so investors should note that Digital Turbine has a forward P/E ratio of 9.77 at this time. For comparison, its industry has an average PER of 42.03, meaning Digital Turbine is trading at a discount to the group.
Investors should also note that APPS has a PEG ratio of 0.98 at this time. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Internet – Software stocks hold an average PEG ratio of 1.99 based on yesterday’s closing prices.
The Internet – Software industry is part of the IT and technology sector. This industry currently has a Zacks Industry Rank of 85, which places it in the top 34% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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Digital Turbine, Inc. (APPS): Free Stock Analysis Report
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