AppLovin (APP) Beats Stock Market Upswing: What Investors Need to Know

AppLovin (APP) closed the latest trading day at $344.82, indicating a +1.12% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.The the stock of mobile app technology company has risen by 2.3% in the past month, leading the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34%.The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. The company is expected to report EPS of $1.27, up 159.18% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.26 billion, showing a 31.88% escalation compared to the year-ago quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.06 per share and a revenue of $4.59 billion, signifying shifts of +314.29% and +39.92%, respectively, from the last year.It is also important to note the recent changes to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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 last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. AppLovin is holding a Zacks Rank of #1 (Strong Buy) right now.Investors should also note AppLovin's current valuation metrics, including its Forward P/E ratio of 84.07. This denotes a premium relative to the industry's average Forward P/E of 26.46.Meanwhile, APP's PEG ratio is currently 4.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. APP's industry had an average PEG ratio of 1.5 as of yesterday's close.The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.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.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AppLovin Corporation (APP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks