In the latest trading session, Apple (AAPL) closed at $110.34, marking a -1.6% move from the previous day. This change lagged the S&P 500’s 0.84% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.27%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 3.09% in the past month. In that same time, the Computer and Technology sector gained 0.69%, while the S&P 500 gained 0.6%.
AAPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, down 9.21% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $63.72 billion, down 0.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $273 billion. These totals would mark changes of +9.09% and +4.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AAPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. AAPL is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AAPL currently has a Forward P/E ratio of 34.63. Its industry sports an average Forward P/E of 9.49, so we one might conclude that AAPL is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 3.25. 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. AAPL’s industry had an average PEG ratio of 3.25 as of yesterday’s close.
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 includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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