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

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In the latest trading session, Apple (AAPL) closed at $131.56, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 4.38% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.

Investors will be hoping for strength from Apple as it approaches its next earnings release. The company is expected to report EPS of $1.14, down 12.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $82.36 billion, up 1.13% from the prior-year quarter.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.11 per share and revenue of $394.45 billion. These results would represent year-over-year changes of +8.91% and +7.83%, respectively.

It is also important to note the 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. 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Apple is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 21.55 right now. Its industry sports an average Forward P/E of 7.78, so we one might conclude that Apple is trading at a premium comparatively.

We can also see that AAPL currently has a PEG ratio of 1.72. 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. AAPL's industry had an average PEG ratio of 1.84 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 228, putting it in the bottom 10% 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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