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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 $155.43, moving +1.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 11.09% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.4% and lagged the S&P 500's loss of 7.95% in that time.

Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. The company is expected to report EPS of $1.26, up 1.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $88.09 billion, up 5.68% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $392.28 billion. These totals would mark changes of +8.91% and +7.23%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Apple is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 25.2. For comparison, its industry has an average Forward P/E of 6.6, which means Apple is trading at a premium to the group.

Also, we should mention that AAPL has a PEG ratio of 1.99. 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. The Computer - Mini computers industry currently had an average PEG ratio of 2.41 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 181, which puts it in the bottom 29% 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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