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AppLovin (APP) closed the most recent trading day at $338.39, moving -1.15% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Prior to today's trading, shares of the mobile app technology company had lost 0.72% over the past month. This has lagged the Business Services sector's gain of 0.03% and the S&P 500's gain of 1.17% in that time.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on February 12, 2025. On that day, AppLovin is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 161.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 32.27% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for AppLovin. 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 shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 past month, the Zacks Consensus EPS estimate has shifted 3.8% upward. AppLovin is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 55.96. Its industry sports an average Forward P/E of 23.37, so one might conclude that AppLovin is trading at a premium comparatively.
We can also see that APP currently has a PEG ratio of 2.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. APP's industry had an average PEG ratio of 1.44 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons of all 250+ industries.