AppFolio (APPF) closed the most recent trading day at $167.51, moving +2.36% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.
The property management software maker's stock has dropped by 3.85% in the past month, falling short of the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
The upcoming earnings release of AppFolio will be of great interest to investors. The company's upcoming EPS is projected at $1.67, signifying a 21.01% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $277.64 million, up 17.86% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.75 per share and revenue of $1.12 billion, indicating changes of +27.6% and +17.47%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for AppFolio. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been no change in the Zacks Consensus EPS estimate. AppFolio is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AppFolio is holding a Forward P/E ratio of 24.24. This indicates a premium in contrast to its industry's Forward P/E of 18.84.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).