Digital Turbine (APPS) provides software products for device original equipment manufacturers, mobile operators, and other organizations. In short, APPS makes it easier for businesses to generate revenue through mobile content.
APPS’ value offering is exemplified by its DT Ignite mobile device management solution with distribution capabilities for targeted apps. APPS also provides app discovery tools, payment solutions, content management solutions, and more.
Below, we delve into APPS to give investors a sense of how it stacks up with the rest of the competition in the Software – Application space. Let’s take a look at whether APPS is a Buy, Sell or Hold.
APPS Points of Note
APPS has a forward P/E ratio of 38.49. This elevated ratio indicates the stock is a bit overvalued at $63.61. The stock is currently trading at $63.61. APPS has a 52-week high of $102.56 and a 52-week low of $21.70.
APP was recently added to the S&P MidCap 400 index, spurring a double-digit percentage increase in its share price. The addition of APPS to the index will spur an influx of cash from ETFs as they add shares to align their holdings with the performance of the index. However, this spike in demand for APPS shares does not guarantee it will continue to soar. Plenty of investors will not hesitate to take their profit off the table, locking in gains and shifting the risk to ETFs and retail investors who missed the APPS boat.
If APPS' executives are correct, the company will rake in more than $300 million in revenue, representing a 40% increase from the initial quarter. This level of revenue also equates to a 300% spike on a year-over-year basis. The bottom line is APPS' business is growing and the company's brass deserves credit for its strategic acquisitions. All in all, APPS has acquired more than half a dozen companies.
Google announced this past August that the search giant will mandate that new apps must be published with the Android App bundle in addition to its popular Google Play store. The announcement was music to APPS’ executives' and investors’ ears as the company strategically planned for such a requirement in preceding years.
What are the Analysts Saying About APPS?
The analysts are bullish on APPS. The stock's average analyst price target has increased by $22.40 in the previous 175 days. However, it is concerning that the majority of analysts do not consider the stock a Strong Buy. Only one out of five analysts view the stock as a Strong Buy. Exactly three analysts consider APPS to be a Buy and one considers it a Hold.
APPS POWR Ratings
APPS has some decent individual POWR Ratings component grades yet its overarching POWR Rating is a D, meaning it is a Sell. The stock has a B Growth component grade along with Cs in the Momentum and Sentiment components of the POWR Ratings. However, APPS has an F Stability component grade. Click here to find out how APPS fares in the rest of the POWR Ratings components such as Value and Quality.
APPS is ranked 117th out of 147 stocks in the Software - Application category. Investors can find out more about this segment by clicking here.
Is APPS a Good Software Stock to Invest In?
APPS is unworthy of your hard-earned investing dollars. APPS is a Sell as evidenced by its D POWR Rating. However, there is the potential for APPS to move higher in the weeks ahead. Sign up for access to our proprietary POWR Ratings model and continue to monitor APPS moving forward.
APPS shares were trading at $63.81 per share on Friday morning, down $0.27 (-0.42%). Year-to-date, APPS has gained 12.82%, versus a 20.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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