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

Zacks Equity Research

Apple (AAPL) closed the most recent trading day at $284, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.65% over the past month, outpacing the Computer and Technology sector's gain of 4.31% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from AAPL as it approaches its next earnings release. On that day, AAPL is projected to report earnings of $4.51 per share, which would represent year-over-year growth of 7.89%. Our most recent consensus estimate is calling for quarterly revenue of $87.74 billion, up 4.07% from the year-ago period.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $13.07 per share and revenue of $275.09 billion. These results would represent year-over-year changes of +9.92% and +5.73%, respectively.

Investors should also note any recent changes to analyst estimates for AAPL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. AAPL is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, AAPL is holding a Forward P/E ratio of 21.38. This valuation marks a premium compared to its industry's average Forward P/E of 9.72.

Meanwhile, AAPL's PEG ratio is currently 2.04. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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