Apple (AAPL) Rises Higher Than Market: Key Facts
Apple (AAPL) ended the recent trading session at $341.07, demonstrating a +1.53% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.51%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.48%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 6.78% outpaced the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Apple will be of great interest to investors. On that day, Apple is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 7.57%. Meanwhile, our latest consensus estimate is calling for revenue of $112.84 billion, up 10.12% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.85 per share and a revenue of $477.36 billion, demonstrating changes of +18.63% and +14.71%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% decrease. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 37.94. Its industry sports an average Forward P/E of 20.53, so one might conclude that Apple is trading at a premium comparatively.
Investors should also note that AAPL has a PEG ratio of 2.88 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
