APPLOVIN CORP-CLASS A (NASDAQ:APP)—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether APPLOVIN CORP-CLASS A (NASDAQ:APP) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but APPLOVIN CORP-CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

What does the Growth looks like for APP

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. APP has earned a 9 for growth:

• APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 354.00%, which is quite impressive.
• APP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.87% yearly.
• APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.44%.
• APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
• The Earnings Per Share is expected to grow by 27.00% on average over the next years. This is a very strong growth
• Based on estimates for the next years, APP will show a quite strong growth in Revenue. The Revenue will grow by 18.31% on average per year.

A Closer Look at Health for APP

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. APP has earned a 8 out of 10:

• APP has an Altman-Z score of 12.40. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
• APP's Altman-Z score of 12.40 is amongst the best of the industry. APP outperforms 89.82% of its industry peers.
• The Debt to FCF ratio of APP is 1.68, which is an excellent value as it means it would take APP, only 1.68 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of APP (1.68) is better than 68.42% of its industry peers.
• Even though the debt/equity ratio score it not favorable for APP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• APP has a Current Ratio of 2.19. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.19, APP is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
• APP has a Quick Ratio of 2.19. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP has a better Quick ratio (2.19) than 63.86% of its industry peers.

How do we evaluate the Profitability for APP?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. APP has earned a 8 out of 10:

• APP has a better Return On Assets (26.88%) than 97.19% of its industry peers.
• The Return On Equity of APP (144.74%) is better than 100.00% of its industry peers.
• APP's Return On Invested Capital of 30.76% is amongst the best of the industry. APP outperforms 97.54% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 11.46%.
• The last Return On Invested Capital (30.76%) for APP is above the 3 year average (14.51%), which is a sign of increasing profitability.
• The Profit Margin of APP (33.50%) is better than 94.04% of its industry peers.
• APP's Profit Margin has improved in the last couple of years.
• APP's Operating Margin of 39.78% is amongst the best of the industry. APP outperforms 97.19% of its industry peers.
• APP's Operating Margin has improved in the last couple of years.
• APP's Gross Margin of 75.22% is fine compared to the rest of the industry. APP outperforms 69.12% of its industry peers.

Why is APP a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. APP scores a 7 out of 10:

Although the technical rating is only medium, APP does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 232.28, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for APP in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Check the latest full fundamental report of APP for a complete fundamental analysis.

Our latest full technical report of APP contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.