September 30, 2022

Taquer-Tech

Melts In Your Technology

Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

Digital Turbine (APPS) closed at $50.45 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500’s 0.75% loss on the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the mobile software company had lost 23.09% over the past month, lagging the Computer and Technology sector’s loss of 2.28% and the S&P 500’s loss of 0.13% in that time.

Digital Turbine will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, up 104.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $353.1 million, up 298.57% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $1.2 billion, which would represent changes of +113.51% and +283.79%, respectively, from the prior year.

Any recent changes to analyst estimates for Digital Turbine should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Digital Turbine currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Digital Turbine is currently trading at a Forward P/E ratio of 32.33. This represents a discount compared to its industry’s average Forward P/E of 61.31.

It is also worth noting that APPS currently has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Internet – Software stocks are, on average, holding a PEG ratio of 3.74 based on yesterday’s closing prices.

The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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