AppFolio (APPF) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Performance - AppFolio (APPF) closed at $223.31, down 2.29% from the previous trading session, underperforming the S&P 500's loss of 0.63% [1] - Over the past month, AppFolio shares have decreased by 17.42%, contrasting with the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92% [1] Upcoming Financial Results - AppFolio is expected to report EPS of $1.45, reflecting an 11.54% increase from the prior-year quarter [2] - Revenue is anticipated to be $246.08 million, indicating a 19.61% increase from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $5.36 per share, representing a 22.65% increase from the prior year [3] - Revenue for the fiscal year is estimated at $943.55 million, showing an 18.8% increase from the previous year [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for AppFolio are crucial for investors, as positive revisions indicate optimism regarding business and profitability [3][4] - The Zacks Rank system, which assesses estimated changes, currently ranks AppFolio at 3 (Hold) [5] Valuation Metrics - AppFolio is trading at a Forward P/E ratio of 42.64, which is a premium compared to its industry's Forward P/E of 29.25 [5] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]