AppFolio (APPF) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, AppFolio (APPF) closed at $215.80, marking a -1.01% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.83%.
Shares of the property management software maker have appreciated by 1.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.67% and the S&P 500's gain of 5.17%.
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Investors will be eagerly watching for the performance of AppFolio in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.28, indicating a 14.29% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $230.3 million, up 16.68% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.21 per share and revenue of $930.84 million. These totals would mark changes of +19.22% and +17.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppFolio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AppFolio currently has a Zacks Rank of #4 (Sell).
In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 41.88. Its industry sports an average Forward P/E of 29.65, so one might conclude that AppFolio is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 23% of all 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.