Apple (AAPL) closed at $194.83 in the latest trading session, marking a -1.07% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. Meanwhile, the Dow lost 1.27%, and the Nasdaq, a tech-heavy index, lost 1.5%.
The maker of iPhones, iPads and other products's stock has climbed by 3.3% in the past month, falling short of the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 5.77%.
The upcoming earnings release of Apple will be of great interest to investors. The company is expected to report EPS of $2.08, up 10.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117.31 billion, up 0.13% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.56 per share and a revenue of $393.42 billion, demonstrating changes of +7.01% and +2.65%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions help to show the ever-changing nature of near-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Apple is carrying a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 30.01. This denotes a premium relative to the industry's average Forward P/E of 12.66.
One should further note that AAPL currently holds a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Mini computers industry was having an average PEG ratio of 2.72.
The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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