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Wall Street Analysts Believe Applied Digital Corporation (APLD) Could Rally 25.39%: Here's is How to Trade

Core Viewpoint - Applied Digital Corporation (APLD) has shown a significant price increase of 50.8% over the past four weeks, with a mean price target of $20 indicating a potential upside of 25.4% from the current price of $15.95 [1] Price Targets and Analyst Estimates - The mean estimate consists of nine short-term price targets with a standard deviation of $5.39, indicating variability among analysts [2] - The lowest estimate is $13.00, suggesting an 18.5% decline, while the highest estimate is $30.00, indicating an 88.1% potential increase [2] - A low standard deviation signifies a strong agreement among analysts regarding the stock's price direction [9] Earnings Estimates and Analyst Agreement - Analysts have shown strong agreement in revising APLD's earnings estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 8.2% over the past month, with two estimates increasing and one decreasing [12] - APLD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be prudent, as analysts' price targets can often be overly optimistic due to business incentives [8][10] - Despite the skepticism surrounding price targets, the direction they imply can serve as a useful guide for further research [14]