Apple (AAPL) closed the most recent trading day at $134.87, moving -1.33% from the previous trading session. This change lagged the S&P 500’s 0.22% loss on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 14.82% over the past month, outpacing the Computer and Technology sector’s gain of 5.2% and the S&P 500’s gain of 2.78% in that time.
AAPL will be looking to display strength as it nears its next earnings release. On that day, AAPL is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 11.2%. Meanwhile, our latest consensus estimate is calling for revenue of $102.61 billion, up 11.75% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.03 per share and revenue of $320.73 billion, which would represent changes of +22.87% and +16.83%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AAPL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. AAPL currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 33.96. This valuation marks a premium compared to its industry’s average Forward P/E of 10.27.
Investors should also note that AAPL has a PEG ratio of 2.95 right now. 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. Computer – Mini computers stocks are, on average, holding a PEG ratio of 1.68 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 34, which puts it in the top 14% 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.
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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