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AppFolio Hits New 52-Week High on Upgraded Product Suite


Shares of AppFolio, Inc. APPF rallied to a new 52-week high of $50.55, eventually closing a tad lower at $50.30 last Friday. Notably, AppFolio stock has gained 164% year to date, substantially outperforming the 10.7% rally of the industry it belongs to.

The share price momentum has been largely driven by the growing adoption of its products. AppFolio’s constant focus on product and technology related innovations are key catalysts for the company’s growth. The company continuously upgrades its product suite based on customer feedback, making the offerings more consumer friendly.

Most recently, the company announced that its product portfolio for AppFolio Property Manager (APM) customers has been enriched with lucrative features. The enhancements include the likes of AppFolio Renters Insurance, a new Value+ Service, and same day ACH, an addition to the existing Electronic Payments Value+ Platform.

Renter’s Insurance will enable property managers to keep a record of tenant’s liabilities and insurance policies. Same day ACH payments will ensure lesser time consumption. Per management, this first-of-its kind service in the industry will be beneficial to property managers in case of emergency and will also help to keep a better updated record.

Other Strategic Initiatives

Appfolio also announced that it is looking forward to its integration with Amazon’s AMZN voice service, Alexa. This feature will allow tenants to pay rents or submit other requests using voice commands through AppFolio’s platform. We believe the company’s collaboration with Amazon along with the expansion of its offerings will boost its top line going forward.

These advancements are anticipated to increase the customer base of the company, which comprised 10,800 property managers and 9,000 legal customers at the end of the second quarter. The impressive customer count was primarily attributed to the growing adoption of Appfolio Property Manager and MyCase. Recently, PR Newswire, quoted ReportsnReports stating that the property management software market is expected to witness CAGR of 5.2% between 2017 and 2021. We believe AppFolio, with its variety of products, is well placed to grab the opportunity and showcase better performance going ahead.

Earnings Surprise History

The company has delivered positive earnings surprise in the trailing four quarters, with an average surprise of 241.67%. This has boosted investor confidence, which is well reflected in the share price movement of the company.

Zacks Rank & Key Picks

AppFolio sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other stocks that can be considered in the broader technology sphere are Applied Materials, Inc. AMAT and Micron Technology, Inc. MU, both sporting a Zacks Rank #1.

The long-term earnings growth rate for Applied Materials and Lam Research is projected to be 17.1% and 10% respectively.

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