Apple (AAPL) Gains As Market Dips: What You Should Know
Apple (AAPL) closed at $121.19 in the latest trading session, marking a +0.07% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.66%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 4.81% over the past month. This has lagged the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 5.22% in that time.
AAPL will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. The company is expected to report EPS of $0.69, down 9.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $63.72 billion, down 0.51% from the year-ago period.
Any recent changes to analyst estimates for AAPL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 30.24. This valuation marks a premium compared to its industry's average Forward P/E of 8.98.
Also, we should mention that AAPL has a PEG ratio of 2.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.75 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 124, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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.