Apple (AAPL) closed the most recent trading day at $225.74, moving +1.83% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.45%.
The the stock of maker of iPhones, iPads and other products has risen by 0.35% in the past month, lagging the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 5.41%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is slated to reveal its earnings on October 31, 2024. The company is expected to report EPS of $1.60, up 9.59% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $94.53 billion, indicating a 5.62% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Right now, Apple possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 29.4. This indicates a premium in contrast to its industry's Forward P/E of 15.42.
One should further note that AAPL currently holds a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.71.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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