AppFolio (APPF) closed at $160.35 in the latest trading session, marking a +2.41% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The property management software maker's shares have seen a decrease of 12.68% over the last month, not keeping up with the Computer and Technology sector's loss of 4.61% and the S&P 500's loss of 1.82%.
Market participants will be closely following the financial results of AppFolio in its upcoming release. It is anticipated that the company will report an EPS of $1.67, marking a 21.01% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $276.98 million, indicating a 17.58% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.75 per share and revenue of $1.12 billion. These totals would mark changes of +27.6% and +17.47%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for AppFolio. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 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).
Looking at valuation, AppFolio is presently trading at a Forward P/E ratio of 23.2. This denotes a premium relative to the industry average Forward P/E of 18.89.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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).