APPLOVIN CORP-CLASS A (NASDAQ:APP) – A High-Growth Momentum Stock with Strong Technical Setup

APPLOVIN CORP-CLASS A (NASDAQ:APP) stands out as a high-growth momentum candidate with a solid technical setup, making it an interesting prospect for investors seeking both earnings momentum and favorable chart patterns. The company’s recent financial performance and technical structure suggest potential for further upside.

Why APP Fits High-Growth Momentum Criteria

• Exceptional Earnings Growth: APP reported a trailing twelve-month (TTM) EPS growth of 262.5%, with recent quarterly EPS growth exceeding 230%. The next quarter’s estimated EPS growth remains strong at 124.6%.
• Revenue Expansion: Sales growth over the past year reached 41.6%, with consistent quarterly revenue increases, including a 40.3% rise in the most recent quarter.
• Profit Margin Strength: The company’s profit margin improved significantly, reaching 38.8% in the latest quarter, up from 10.8% a year earlier.
• Positive Revisions & Surprises: Analysts have raised next-year EPS estimates by 24.1% over the past three months, and APP has beaten earnings estimates in all of the last four quarters by an average of 35.1%.

Technical Strength & Setup Quality

APP’s technical profile reinforces its appeal:

• Technical Rating of 8: The stock is in a long-term uptrend, outperforming 98% of the market over the past year and ranking in the top 4% of its software industry peers.
• Consolidation Pattern: The setup rating of 7 indicates a recent consolidation phase, with support near $324.69 and resistance around $352.75. A breakout above resistance could signal the next upward move.
• Strong Relative Strength: APP’s relative strength score of 98.56 highlights its market leadership.

For a deeper technical breakdown, review the full technical report for APP.

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Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.