APPLOVIN CORP-CLASS A (NASDAQ:APP) – A Strong Growth Stock with Technical Breakout Potential

APPLOVIN CORP-CLASS A (NASDAQ:APP) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines high growth fundamentals with a promising price pattern, making it an interesting candidate for investors seeking momentum and earnings expansion. Below, we examine why APP stands out.

Strong Growth Fundamentals

• Revenue & Earnings Growth: APP has demonstrated impressive growth, with revenue increasing by 41.6% over the past year and earnings per share (EPS) surging 262.5%. Analysts expect continued strong performance, with projected annual EPS growth of 32% and revenue growth of 24.9%.
• Profitability: The company scores an 8/10 in profitability, with standout metrics including a 46.5% operating margin and a 77.7% gross margin—both well above industry averages.
• Financial Health: With a solid health rating of 8/10, APP maintains manageable debt levels relative to cash flow and shows strong solvency indicators, including a favorable Altman-Z score of 16.94.

Technical Setup

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the upper end of its recent range.
• Support & Resistance: Key support levels exist around $342-$345, while resistance sits near $383-$384. A breakout above resistance could signal further upside.
• Relative Strength: APP outperforms 96% of its software industry peers and has shown consistent upward momentum over the past year.

For a deeper dive into the fundamentals, review the full fundamental report. The technical analysis report provides additional insights on price action and potential entry points.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.