In the latest trading session, Apple (AAPL) closed at $207.35, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 1.32%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 8.37% over the past month. This has outpaced the Computer and Technology sector's gain of 5% and the S&P 500's gain of 3.96% 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 April 30, 2019. On that day, AAPL is projected to report earnings of $2.37 per share, which would represent a year-over-year decline of 13.19%. Our most recent consensus estimate is calling for quarterly revenue of $57.60 billion, down 5.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.39 per share and revenue of $254.40 billion. These totals would mark changes of -4.37% and -4.22%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AAPL. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.06% higher. AAPL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 17.96. For comparison, its industry has an average Forward P/E of 15.9, which means AAPL is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.1. 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. The Computer - Mini computers industry currently had an average PEG ratio of 2.71 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 11, putting it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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