Apple (AAPL) closed at $157.40 in the latest trading session, marking a +1.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 1.61% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 lost 3.9%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. On that day, Apple is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $93.39 billion, down 4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $390.02 billion. These totals would mark changes of -1.15% and -1.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.08% lower. Apple currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 25.65 right now. For comparison, its industry has an average Forward P/E of 8.56, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.59 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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