AppFolio (APPF) Stock Declines While Market Improves: Some Information for Investors

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AppFolio (APPF) closed the latest trading day at $249.05, indicating a -1.09% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.98%.

Coming into today, shares of the property management software maker had gained 3.88% in the past month. In that same time, the Computer and Technology sector gained 3.28%, while the S&P 500 gained 0.34%.

Investors will be eagerly watching for the performance of AppFolio in its upcoming earnings disclosure. On that day, AppFolio is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 9.09%. Meanwhile, the latest consensus estimate predicts the revenue to be $200.01 million, indicating a 16.4% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.41 per share and revenue of $790.55 million, indicating changes of +157.89% and +27.42%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for AppFolio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppFolio currently has a Zacks Rank of #2 (Buy).

Looking at valuation, AppFolio is presently trading at a Forward P/E ratio of 57.04. This valuation marks a premium compared to its industry's average Forward P/E of 33.63.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.