In the latest trading session, AppFolio (APPF) closed at $200.52, marking a +2.4% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.25% for the day. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, added 0.24%.
The stock of property management software maker has fallen by 13.08% in the past month, lagging the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of AppFolio in its upcoming release. The company is predicted to post an EPS of $1.78, indicating a 35.88% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $294.05 million, indicating a 17.92% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.91 per share and revenue of $1.12 billion, indicating changes of +30.62% and +18.32%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for AppFolio. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AppFolio presently features a Zacks Rank of #3 (Hold).
In terms of valuation, AppFolio is presently being traded at a Forward P/E ratio of 28.34. This expresses a premium compared to the average Forward P/E of 18.78 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).