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Apple (AAPL) closed the most recent trading day at $139.07, moving +1.61% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 3.71% over the past month, lagging the Computer and Technology sector's gain of 6.16% and the S&P 500's gain of 4.43% in that time.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be January 27, 2021. On that day, AAPL is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 11.2%. Meanwhile, our latest consensus estimate is calling for revenue of $102.61 billion, up 11.75% from the prior-year quarter.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $4.03 per share and revenue of $320.73 billion. These results would represent year-over-year changes of +22.87% and +16.83%, respectively.
Any recent changes to analyst estimates for AAPL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. AAPL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, AAPL is holding a Forward P/E ratio of 34.01. Its industry sports an average Forward P/E of 23.02, 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 2.96. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.36 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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