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

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Apple (AAPL) closed the most recent trading day at $148.71, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Heading into today, shares of the maker of iPhones, iPads and other products had lost 3.89% over the past month, lagging the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.1% in that time.

Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. In that report, analysts expect Apple to post earnings of $1.14 per share. This would mark a year-over-year decline of 12.31%. Meanwhile, our latest consensus estimate is calling for revenue of $82.44 billion, up 1.23% from the prior-year quarter.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.11 per share and revenue of $394.91 billion. These results would represent year-over-year changes of +8.91% and +7.95%, respectively.

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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. Apple is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 23.91. This represents a premium compared to its industry's average Forward P/E of 9.17.

Also, we should mention that AAPL has a PEG ratio of 1.91. 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. AAPL's industry had an average PEG ratio of 2.1 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 230, putting it in the bottom 10% 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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