Apple (AAPL) closed at $224.59 in the latest trading session, marking a +0.28% move from the prior day. This move outpaced the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.28%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 7.3% over the past month, outpacing the Computer and Technology sector's gain of 1.53% and the S&P 500's gain of 1.95% in that time.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. The company is expected to report EPS of $2.84, down 2.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $62.57 billion, down 0.52% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AAPL. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. AAPL currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AAPL has a Forward P/E ratio of 19.16 right now. Its industry sports an average Forward P/E of 8.68, so we one might conclude that AAPL is trading at a premium comparatively.
We can also see that AAPL currently has a PEG ratio of 2.19. 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 2.19 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 48, which puts it in the top 19% 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.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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