AppFolio (APPF) Stock Sinks As Market Gains: Here's Why

AppFolio (APPF) ended the recent trading session at $170.40, demonstrating a -1.22% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.01%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 1.22%.

Heading into today, shares of the property management software maker had lost 3.31% over the past month, lagging the Computer and Technology sector's loss of 2.06% and the S&P 500's loss of 2.86%.

Investors will be eagerly watching for 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. Meanwhile, our latest consensus estimate is calling for revenue of $258.04 million, up 18.53% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.36 per share and a revenue of $1.11 billion, representing changes of +20.23% and +16.72%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AppFolio. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. AppFolio is currently a Zacks Rank #3 (Hold).

Looking at valuation, AppFolio is presently trading at a Forward P/E ratio of 27.13. This signifies a premium in comparison to the average Forward P/E of 19.67 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% of all 250+ industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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AppFolio, Inc. (APPF): Free Stock Analysis Report

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

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