Apple (AAPL) closed at $184.25 in the latest trading session, marking a -0.75% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.8%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.18%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 4.02% over the past month. This has lagged the Computer and Technology sector's gain of 2.11% and the S&P 500's gain of 3.4% in that time.
The upcoming earnings release of Apple will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.08, reflecting a 10.64% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $117.31 billion, reflecting a 0.13% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.56 per share and a revenue of $393.42 billion, signifying shifts of +7.01% and +2.65%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Apple is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Apple is currently exchanging hands at a Forward P/E ratio of 28.29. This denotes a premium relative to the industry's average Forward P/E of 20.82.
Investors should also note that AAPL has a PEG ratio of 2.56 right now. 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. The Computer - Mini computers industry had an average PEG ratio of 2.56 as trading concluded yesterday.
The Computer - Mini computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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