Apple (AAPL) Dips More Than Broader Markets: What You Should Know
Apple (AAPL) closed the most recent trading day at $221.19, moving -0.43% from the previous trading session. This change lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 1.79% over the past month, outpacing the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 3.08% in that time.
Investors will be hoping for strength from AAPL as it approaches its next earnings release, which is expected to be November 1, 2018. The company is expected to report EPS of $2.77, up 33.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.41 billion, up 16.79% from the year-ago period.
Any recent changes to analyst estimates for AAPL should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. AAPL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 16.51. This represents a discount compared to its industry's average Forward P/E of 16.93.
Also, we should mention that AAPL has a PEG ratio of 1.71. 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. AAPL's industry had an average PEG ratio of 1.71 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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.
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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