Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
Apple (AAPL) closed at $141.11 in the latest trading session, marking a +1.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.05%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 9.83% in the past month. In that same time, the Computer and Technology sector lost 9.29%, while the S&P 500 lost 5.07%.
Investors will be hoping for strength from AAPL as it approaches its next earnings release, which is expected to be October 28, 2021. The company is expected to report EPS of $1.23, up 68.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $84.95 billion, up 31.3% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AAPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% higher. AAPL is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AAPL is holding a Forward P/E ratio of 24.38. This represents a premium compared to its industry's average Forward P/E of 16.67.
Also, we should mention that AAPL has a PEG ratio of 1.95. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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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