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AppFolio (APPF) closed the most recent trading day at $242.55, moving -0.5% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the property management software maker had lost 5.95% over the past month, lagging the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2% in that time.
The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. The company is expected to report EPS of $0.96, up 9.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $200.01 million, up 16.4% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, AppFolio holds a Zacks Rank of #3 (Hold).
In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 43.1. This signifies a premium in comparison to the average Forward P/E of 28.07 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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