Apple (AAPL) ended the most recent trading day at $207.49, down -1.04% from the previous trading session. This change lagged the S&P 500’s 0.16% loss on the day, while the Dow recorded a 0.04% gain and the tech-heavy Nasdaq lost 0.18%.
Shares of the company, which makes iPhones, iPads and other products, have risen 12.2% over the past month, outpacing the Computer Technology sector’s 6.77% gain and the S&P 500’s 3.15% gain.
The investment community will be closely monitoring Apple’s upcoming earnings report performance, as the company is projected to post EPS of $1.33, up 5.56% from the year-ago quarter, while our most recent consensus estimate is calling for revenue of $83.07 billion, up 1.55% from the year-ago quarter.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $6.58 per share and revenue of $384.68 billion, which would represent changes of +7.34% and +0.36%, respectively, from the prior year.
Investors should also pay attention to the latest changes to analyst estimates for Apple. These latest adjustments often reflect shifting near-term business patterns. As such, positive changes in estimates indicate analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with future stock price movements, and investors can take advantage of this by using the Zacks Rank, which is our model that takes these estimate changes into account and delivers a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven, 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 moved 0.17% higher. Apple currently sports a Zacks Rank #3 (Hold).
Looking at valuation, Apple is currently trading at a forward P/E ratio of 31.85, which represents a premium compared to the industry’s average forward P/E ratio of 12.3.
It’s also worth mentioning that AAPL has a PEG ratio of 2.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. The average PEG ratio for the Computer – Minicomputer industry was 2.31 as of yesterday’s close.
The Computers – Minicomputers industry is a part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track AAPL in the upcoming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Download today: 7 Best Stocks for the Next 30 Days Click to get this free report.
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
