AppFolio (APPF) ended the recent trading session at $224.41, demonstrating a -1.41% swing from the preceding day's closing price. This change was narrower than the S&P 500's 4.84% loss on the day. On the other hand, the Dow registered a loss of 3.98%, and the technology-centric Nasdaq decreased by 5.97%.

The property management software maker's stock has climbed by 1.63% in the past month, exceeding the Computer and Technology sector's loss of 7.53% and the S&P 500's loss of 4.7%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company is expected to report EPS of $1.23, up 17.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $221.56 million, up 18.21% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.37 per share and a revenue of $940.44 million, indicating changes of +22.88% and +18.41%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AppFolio. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, AppFolio is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, AppFolio is presently being traded at a Forward P/E ratio of 42.37. Its industry sports an average Forward P/E of 26.52, so one might conclude that AppFolio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.

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.

To follow APPF in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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