In the latest trading session, AppFolio (APPF) closed at $220.11, marking a -1.72% move from the previous day. This change was narrower than the S&P 500's 1.78% loss on the day. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 2.61%.
Prior to today's trading, shares of the property management software maker had lost 2.87% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.78% and the S&P 500's loss of 3.48% in that time.
Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.23, marking a 17.14% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $221.56 million, up 18.21% from the year-ago period.
APPF's full-year Zacks Consensus Estimates are calling for earnings of $5.37 per share and revenue of $940.44 million. These results would represent year-over-year changes of +22.88% and +18.41%, respectively.
It is also important to note the recent changes to 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 company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Currently, AppFolio is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, AppFolio is currently exchanging hands at a Forward P/E ratio of 41.71. For comparison, its industry has an average Forward P/E of 26.71, which means AppFolio is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 136, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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