Apple (AAPL) closed at $196.89 in the latest trading session, marking a +1.24% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.11%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.23%.
The the stock of maker of iPhones, iPads and other products has risen by 5.37% in the past month, lagging the Computer and Technology sector's gain of 6.52% and overreaching the S&P 500's gain of 3.51%.
The upcoming earnings release of Apple will be of great interest to investors. On that day, Apple is projected to report earnings of $1.33 per share, which would represent year-over-year growth of 5.56%. Simultaneously, our latest consensus estimate expects the revenue to be $83.07 billion, showing a 1.55% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.57 per share and revenue of $384.68 billion. These totals would mark changes of +7.18% and +0.36%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Apple is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Apple is currently exchanging hands at a Forward P/E ratio of 29.58. For comparison, its industry has an average Forward P/E of 11.82, which means Apple is trading at a premium to the group.
It is also worth noting that AAPL currently has a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AAPL's industry had an average PEG ratio of 2.3 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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