Applied Digital shares are powering higher. Why are APLD shares rallying?
Earnings Preview & HistoryApplied Digital is scheduled to report fourth-quarter earnings on July 27. The company is expected to report a loss of 36 cents per share along with revenue of $91.91 million. For the prior quarter, Applied Digital reported earnings per share of $0.09, beating the consensus estimate of a loss of 17 cents per share. The company also posted revenue of $126.60 million, exceeding the consensus estimate of $77.11 million.Applied Digital has beaten EPS estimates in seven consecutive quarters. Over the last four quarters, the company has averaged an EPS surprise of 1.03% and a revenue surprise of 0.44%.Applied Digital Eyes $1B NOI in 5 YearsOversold, But Not Out Of The WoodsThe chart is still in a clear downtrend on intermediate timeframes, with the stock trading 22.9% below its 20-day SMA, 33.2% below its 50-day SMA, and 17.4% below its 200-day SMA. That distance from the major averages tells you rallies are still fighting overhead supply, even if the premarket bounce extends.Momentum is the main story right now: RSI is 26.30, which puts the stock in oversold territory and signals the selling has become stretched. In plain terms, RSI helps gauge whether a move has gone "too far, too fast," and readings below 30 often coincide with tradable bounces—but they don’t, by themselves, confirm a durable bottom.From a structure standpoint, May marked the recent swing high (and the 52-week high), while July logged a swing low as RSI slipped into oversold territory. Longer-term, the 50-day SMA remains above the 200-day SMA (a constructive longer-term backdrop), but the 20-day SMA sitting below the 50-day SMA keeps the near-term trend bearish until price can reclaim key moving-average zones.
