DDigital Turbine (APPS) closed at $15.41 last trading session, marking a -0.45% move from the previous day. That move lagged the S&P 500’s 2.45% daily gain. Meanwhile, the Dow Jones gained 2.15% and the Nasdaq, a technology-heavy index, added 0.4%.
Prior to today’s trading, shares of the mobile software company were down 39.32% in the past month. This was lower than the IT & Technology sector’s loss of 4.95% and the S&P 500’s loss of 5.71% 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 $0.35, up 2.94% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $184.25 million, down 13.34% from the year-ago quarter.
For the full year, our Zacks consensus estimates call for earnings of $1.72 per share and revenue of $859.85 million, which would represent swings of +3.61% and -20.56%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Digital Turbine. These revisions help show the ever-changing nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past 30 days, our consensus EPS projection is down 16.62%. Digital Turbine currently sports a Zacks rank of #3 (Hold).
Investors should also note Digital Turbine’s current valuation metrics, including its Forward P/E ratio of 9. Its industry shows an average Forward P/E of 40.11, so we can conclude that Digital Turbine is trading with a comparative discount.
Additionally, it is worth mentioning that APPS has a PEG ratio of 0.33. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. Internet – Software stocks hold an average PEG ratio of 2.22 based on yesterday’s closing prices.
The Internet – Software industry is part of the IT and technology sector. This group has a Zacks Industry Rank of 166, which places it in the bottom 35% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual 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 use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.
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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.
