If I could only pick a handful of stocks to own in 2021, Digital Turbine would undoubtedly be one of them. There are a few things I really like about this company. First, it had an incredible 2020 surging from $6 to $60 in only six months. I traded it a few times in the fall and it can really exhibit explosive action very quickly if handled properly.
From a fundamental standpoint, it has shown earnings and sales acceleration over the past three quarters and annual earnings are estimated to be up over 200% for 2021. With a return on equity of 31% and after-tax margins of 20%, Digital Turbine (ticker symbol $APPS) has shown itself to be an exceptional growth stock.
Its' technicals are just as impressive as its' fundamentals. I love all the big volume accumulation on the weekly chart and the resilience of APPS to hold above its 10-week line. Other than the week prior to the United States Presidential election, APPS has seen a tendency to find support at the 50-day and 10-week moving averages, indicating funds are coming in to buy it. This is also evident in the fact that the number of funds owning it has increased each of the last four quarters. On a weekly chart, it also found support at a recent breakout level, demonstrating an appetite for this stock.
I took a position in APPS this week and will look to add more to my position if future buy points arise.
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Full Disclosure: Digital Turbine is a stock I currently own.
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