In the latest market close, AppLovin (APP) reached $346.29, with a +1.93% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.

Shares of the mobile app technology company have depreciated by 17.23% over the course of the past month, underperforming the Business Services sector's loss of 3.54% and the S&P 500's loss of 3.59%.

Market participants will be closely following the financial results of AppLovin in its upcoming release. The company is forecasted to report an EPS of $1.45, showcasing a 116.42% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.38 billion, indicating a 30.26% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.87 per share and a revenue of $5.67 billion, signifying shifts of +51.66% and +20.44%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for AppLovin. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AppLovin is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 49.47. This indicates a premium in contrast to its industry's Forward P/E of 21.61.

It is also worth noting that APP currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. APP's industry had an average PEG ratio of 1.29 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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AppLovin Corporation (APP) : Free Stock Analysis Report

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

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