In the latest close session, AppFolio (APPF) was down 5.89% at $148.59. This move lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the property management software maker have depreciated by 1.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of AppFolio in its forthcoming earnings report. The company's upcoming EPS is projected at $1.67, signifying a 21.01% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $276.98 million, reflecting a 17.58% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.75 per share and a revenue of $1.12 billion, signifying shifts of +27.6% and +17.47%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, AppFolio boasts a Zacks Rank of #3 (Hold).
In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 23.39. Its industry sports an average Forward P/E of 18.64, so one might conclude that AppFolio is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).