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Bull of the Day: Digital Turbine (APPS)
ZACKS· 2025-11-10 13:01
Core Viewpoint - The NASDAQ is experiencing a resurgence, particularly in small-cap tech, presenting opportunities to identify stocks with strong earnings trends that are currently undervalued [1] Company Overview - Digital Turbine (APPS) is highlighted as a Zacks Rank 1 (Strong Buy) stock, positioned at the intersection of mobile advertising, app delivery, and content monetization [2] - The company's software is pre-installed on smartphones, enabling carriers and manufacturers to deliver apps and ads seamlessly to users [2] Earnings Trends - Analysts have revised next year's earnings estimates upward, increasing the Zacks Consensus Estimate from 73 cents to 85 cents, indicating a projected earnings growth of 157% year-over-year [3] - Despite a current year earnings contraction of 5.7%, the positive revisions signal a turnaround for the company [3] Market Position - Digital Turbine's turnaround is evident in its Price, Consensus & EPS Surprise chart, with estimates trending higher since Q2 and six consecutive quarterly earnings beats fostering analyst optimism [4] - The stock trades at a forward P/E of around 18x, significantly below the software industry's average of 28x and the broader market's 24x earnings [4] Technical Analysis - The stock shows a strong positive trend with a 200-day moving average positively sloped, currently trading near $6 after a pullback from over $8 [5] - A retest of the 50-day moving average occurred recently, indicating a potential buying opportunity at this key technical level [5]