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AppFolio (APPF) ended the recent trading session at $261.51, demonstrating a -0.81% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.32%.
Shares of the property management software maker witnessed a gain of 14.97% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.63% and the S&P 500's gain of 3.6%.
The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 9.09% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $200.01 million, reflecting a 16.4% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.41 per share and revenue of $790.55 million, which would represent changes of +157.89% and +27.42%, respectively, from the prior year.
Any recent changes to analyst estimates for AppFolio should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AppFolio is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note AppFolio's current valuation metrics, including its Forward P/E ratio of 59.73. This expresses a premium compared to the average Forward P/E of 34.01 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 12% of over 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.