In the latest trading session, Apple (AAPL) closed at $185.01, marking a +0.05% move from the previous day. This change outpaced the S&P 500’s 0.47% loss on the day. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
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Coming into today, shares of the maker of iPhones, iPads and other products had gained 6.15% in the past month. In that same time, the Computer and Technology sector gained 8.33%, while the S&P 500 gained 5.36%.
Apple will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.18, down 1.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.17 billion, down 2.16% from the year-ago period.
AAPL’s full-year Zacks Consensus Estimates are calling for earnings of $5.99 per share and revenue of $384.34 billion. These results would represent year-over-year changes of -1.96% and -2.53%, respectively.
Any recent changes to analyst estimates for Apple should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Apple currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Apple currently has a Forward P/E ratio of 30.86. This valuation marks a premium compared to its industry’s average Forward P/E of 9.27.
We can also see that AAPL currently has a PEG ratio of 2.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Computer – Mini computers was holding an average PEG ratio of 2.47 at yesterday’s closing price.
The Computer – Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.