Applovin-AppLovin (APP) Outperforms Broader Market: What You Need to Know

Group 1: Company Performance - AppLovin (APP) closed at $346.29, reflecting a +1.93% increase from the previous day, outperforming the S&P 500's daily gain of 0.16% [1] - Over the past month, AppLovin's shares have decreased by 17.23%, underperforming the Business Services sector's loss of 3.54% and the S&P 500's loss of 3.59% [1] Group 2: Financial Forecast - AppLovin is expected to report an EPS of$ 1.45, representing a 116.42% increase from the same quarter last year, with a revenue forecast of $1.38 billion, indicating a 30.26% increase [2] - For the annual period, the Zacks Consensus Estimates predict earnings of$ 6.87 per share and revenue of $5.67 billion, reflecting increases of +51.66% and +20.44% respectively from the previous year [3] Group 3: Analyst Estimates and Ratings - Recent changes to analyst estimates for AppLovin indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system currently rates AppLovin as 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [6] Group 4: Valuation Metrics - AppLovin has a Forward P/E ratio of 49.47, which is a premium compared to its industry's Forward P/E of 21.61 [6] - The company has a PEG ratio of 2.47, while its industry average PEG ratio is 1.29 [7] Group 5: Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]