AppFolio (APPF) Increases Yet Falls Behind Market: What Investors Need to Know

Company Performance - AppFolio's stock closed at $235.40, reflecting a +0.37% change from the previous trading day, underperforming the S&P 500's daily gain of 0.42% [1] - Over the past month, AppFolio's shares gained 1.1%, while the Computer and Technology sector and the S&P 500 gained 1.78% and 2.06%, respectively [1] - The upcoming earnings report is expected to show an EPS of $1.02, representing a 72.88% increase from the prior-year quarter, with projected revenue of $198.52 million, up 20% year-over-year [1] Full Year Estimates - For the full year, analysts expect earnings of $4.20 per share and revenue of $777.91 million, marking increases of +145.61% and +25.38% from the previous year [2] - Recent adjustments to analyst estimates indicate changing business trends, with positive revisions suggesting optimism regarding the company's profitability [2] Zacks Rank and Valuation - AppFolio currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 55.87, indicating a premium compared to the industry's average Forward P/E of 30.96 [3] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 83, placing it in the top 33% of over 250 industries [3] Industry Performance - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [4]