AppFolio (APPF) closed at $159.78 in the latest trading session, marking a -5.07% move from the prior day. This change lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.
The stock of property management software maker has risen by 11.82% in the past month, leading the Computer and Technology sector's loss of 3.11% and the S&P 500's loss of 1.63%.
The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. In that report, analysts expect AppFolio to post earnings of $1.67 per share. This would mark year-over-year growth of 21.01%. Meanwhile, our latest consensus estimate is calling for revenue of $277.64 million, up 17.86% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.75 per share and a revenue of $1.12 billion, indicating changes of +27.6% and +17.47%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppFolio is currently a Zacks Rank #3 (Hold).
Investors should also note AppFolio's current valuation metrics, including its Forward P/E ratio of 24.94. Its industry sports an average Forward P/E of 18.59, so one might conclude that AppFolio is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 35% of all industries, numbering over 250.
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.
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).