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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know

·3 min read

Apple (AAPL) closed the most recent trading day at $153.04, moving +1.35% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the maker of iPhones, iPads and other products had gained 11.14% in the past month. In that same time, the Computer and Technology sector lost 12.83%, while the S&P 500 gained 7.25%.

Apple will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. On that day, Apple is projected to report earnings of $1.13 per share, which would represent a year-over-year decline of 13.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.86 billion, up 0.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.09 per share and revenue of $392.69 billion, which would represent changes of +8.56% and +7.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Apple. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. Apple is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Apple is holding a Forward P/E ratio of 24.8. Its industry sports an average Forward P/E of 7.63, so we one might conclude that Apple is trading at a premium comparatively.

Meanwhile, AAPL's PEG ratio is currently 1.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 1.94 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 100, putting it in the top 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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