AppFolio (APPF) closed the most recent trading day at $146.56, moving +1.51% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Shares of the property management software maker witnessed a loss of 12.46% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.98%, and the S&P 500's gain of 0.08%.
The upcoming earnings release of AppFolio will be of great interest to investors. On that day, AppFolio is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 21.01%. Simultaneously, our latest consensus estimate expects the revenue to be $276.98 million, showing a 17.58% escalation compared to the year-ago quarter.
APPF's full-year Zacks Consensus Estimates are calling for earnings of $6.75 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +27.6% and +17.47%, respectively.
Investors should also note any recent changes to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppFolio currently has a Zacks Rank of #2 (Buy).
Digging into valuation, AppFolio currently has a Forward P/E ratio of 21.39. This expresses a premium compared to the average Forward P/E of 18 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow APPF in the coming trading sessions, be sure to utilize Zacks.com.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).