In the latest market close, Apple (AAPL) reached $193.89, with a +1.22% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.32%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 1.05% over the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61% in that time.
The investment community will be closely monitoring the performance of Apple in its forthcoming earnings report. The company is scheduled to release its earnings on February 1, 2024. The company is predicted to post an EPS of $2.09, indicating a 11.17% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $117.49 billion, indicating a 0.29% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.60 per share and revenue of $393.49 billion, which would represent changes of +7.67% and +2.66%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Apple. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. As of now, Apple holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Apple is currently exchanging hands at a Forward P/E ratio of 29.05. This denotes a premium relative to the industry's average Forward P/E of 20.61.
It's also important to note that AAPL currently trades at a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AAPL's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Apple Inc. (AAPL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
