Why AppLovin Corporation (APP) Stock is a Strong Buy Opportunity
Are you looking for a promising stock to add to your portfolio? Look no further than AppLovin Corporation (APP). This tech company’s stock has surged an impressive 97% year to date, and we believe it has the potential to keep climbing in the near future. If you haven’t already jumped on the bandwagon, now might be the perfect time to consider adding APP to your investment portfolio.
One of the key factors that make APP an attractive pick is its solid rank and VGM score. With a Zacks Rank #1 (Strong Buy) and a VGM Score of B, APP is considered a compelling investment opportunity. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment prospects for investors.
Moreover, analysts have shown confidence in APP, with six estimates for 2024 moving north in the past 60 days. The Zacks Consensus Estimate for 2024 earnings has also increased by 19.8% during the same period. Additionally, APP has a positive earnings surprise history, outperforming the Zacks Consensus Estimate in each of the last four quarters.
Looking ahead, APP’s growth prospects are strong, with the Zacks Consensus Estimate for 2024 earnings indicating over 100% growth from the previous year. Earnings in 2025 are also expected to rise by 20.7% from the prior year’s actuals.
The company’s top line is thriving, driven by its commitment to execution and innovation, particularly in the Software Platform business. APP’s sales increased by 48% year over year in the first quarter of 2024, with the Software Platform business growing by an impressive 91% year over year.
APP has introduced advanced technology, enhanced gaming studios, and embarked on new initiatives to fuel market expansion and long-term growth. In the first quarter of 2024, the company achieved over 100% year-over-year growth in adjusted EBITDA, with adjusted EBITDA margin expanding by 1400 basis points year over year.
If you’re considering other stocks in the business services sector, Booz Allen Hamilton (BAH) and SPX Technologies, Inc. (SPXC) are worth a look. Both companies have strong growth expectations and a history of delivering positive earnings surprises.
In conclusion, AppLovin Corporation (APP) is a stock with significant growth potential and a track record of outperforming expectations. With a solid rank, positive earnings outlook, and strong growth prospects, APP could be a valuable addition to your investment portfolio. Don’t miss out on this opportunity to invest in a company that is poised for success in the tech industry.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.