AppFolio (APPF) Rises Higher Than Market: Key Facts

In the latest close session, AppFolio (APPF) was up +1.6% at $180.60. This change outpaced the S&P 500's 0.04% gain on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.36%.

Heading into today, shares of the property management software maker had lost 6.38% over the past month, lagging the Computer and Technology sector's loss of 5.15% and the S&P 500's loss of 1.33%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.43, signifying a 18.18% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $258.04 million, indicating a 18.53% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.36 per share and a revenue of $1.11 billion, indicating changes of +20.23% and +16.72%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for AppFolio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.6% rise in the Zacks Consensus EPS estimate. At present, AppFolio boasts a Zacks Rank of #3 (Hold).

With respect to valuation, AppFolio is currently being traded at a Forward P/E ratio of 27.96. This indicates a premium in contrast to its industry's Forward P/E of 19.6.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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