AppFolio (APPF) Rises But Trails Market: What Investors Should Know

Core Viewpoint - AppFolio's stock performance has lagged behind major indices, with a recent close of $214.50, reflecting a +1.35% change, compared to the S&P 500's gain of 1.59% [1] Group 1: Stock Performance - Over the past month, AppFolio's shares have decreased by 16.54%, underperforming the Computer and Technology sector's loss of 3.43% and the S&P 500's loss of 2.42% [2] - The stock is currently trading at a Forward P/E ratio of 39.41, which is higher than the industry average of 27.99 [8] Group 2: Earnings Expectations - Analysts expect AppFolio to report earnings of$ 1.23 per share in the upcoming earnings disclosure, indicating a year-over-year growth of 17.14% [3] - The consensus estimate for quarterly revenue is $221.56 million, representing an 18.21% increase from the previous year [3] - Full-year estimates project earnings of$ 5.37 per share and revenue of $940.44 million, reflecting year-over-year changes of +22.88% and +18.41%, respectively [4] Group 3: Analyst Sentiment - Recent changes to analyst estimates for AppFolio suggest a positive outlook on the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which evaluates estimate changes, currently ranks AppFolio at 3 (Hold), with a recent 5.83% decline in the Zacks Consensus EPS estimate [7] Group 4: Industry Context - The Internet - Software industry, to which AppFolio belongs, holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]