Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying strong growth stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - AppFolio (APPF) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth potential beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - AppFolio has a historical EPS growth rate of 17.5%, with projected EPS growth of 18.8% this year, surpassing the industry average of 18.6% [4] - Earnings growth is crucial for investors, particularly double-digit growth, which signals strong future prospects [3] Group 3: Cash Flow Growth - The year-over-year cash flow growth for AppFolio is 170.5%, significantly higher than the industry average of -17.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 16.5%, compared to the industry average of 14.7% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and AppFolio's current-year earnings estimates have been revised upward by 1.4% over the past month [7][8] Group 5: Investment Conclusion - AppFolio has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [9][10]

Core Viewpoint - The market anticipates AppFolio (APPF) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - AppFolio is expected to post quarterly earnings of $1.28 per share, reflecting a year-over-year increase of +14.3% [3]. - Revenues are projected to reach $231.16 million, which is a 17.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for AppFolio is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.37%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise History - In the last reported quarter, AppFolio was expected to earn $1.22 per share but delivered $1.21, resulting in a surprise of -0.82% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Comparison - Confluent (CFLT), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.08 per share for the same quarter, indicating a year-over-year change of +33.3% [18]. - Confluent's revenues are expected to be $277.76 million, up 18.2% from the previous year, with an Earnings ESP of +10.2%, suggesting a likely beat of the consensus EPS estimate [19].

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: AppFolio's Growth Potential - AppFolio (APPF) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][11] Group 2: Earnings Growth - AppFolio has a historical EPS growth rate of 15%, with projected EPS growth of 17.9% this year, surpassing the industry average of 17.6% [5] - Double-digit earnings growth is preferred by growth investors as it signals strong future prospects [4] Group 3: Cash Flow Growth - AppFolio's year-over-year cash flow growth stands at an impressive 170.5%, significantly higher than the industry average of -18% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 16.5%, compared to the industry average of 15% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for AppFolio have been revised upward, with the Zacks Consensus Estimate increasing by 0.3% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, further validating AppFolio's growth potential [8] Group 5: Overall Assessment - AppFolio has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a solid choice for growth investors [11]

Core Viewpoint - AppFolio reported quarterly earnings of $1.21 per share, slightly missing the Zacks Consensus Estimate of $1.22 per share, but showing an increase from $1.05 per share a year ago [1] - The company posted revenues of $217.7 million for the quarter, which also fell short of the Zacks Consensus Estimate by 1.74%, compared to $187.43 million in the same quarter last year [2] Financial Performance - AppFolio's earnings surprise was -0.82%, and it has surpassed consensus EPS estimates two times over the last four quarters [1][2] - The company has topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.32, with expected revenues of $232.74 million, and for the current fiscal year, the EPS estimate is $5.35 on revenues of $940.44 million [7] Stock Performance - AppFolio shares have declined approximately 8.5% since the beginning of the year, slightly outperforming the S&P 500's decline of 8.6% [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Outlook - The Internet - Software industry, to which AppFolio belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]