Apple (AAPL) closed the most recent trading day at $381.91, moving -0.46% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.94%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 14.22% in the past month. In that same time, the Computer and Technology sector gained 5.46%, while the S&P 500 gained 0.02%.
Investors will be hoping for strength from AAPL as it approaches its next earnings release, which is expected to be July 30, 2020. On that day, AAPL is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 9.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.13 billion, down 4.98% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $12.33 per share and revenue of $262.37 billion. These results would represent year-over-year changes of +3.7% and +0.84%, respectively.
It is also important to note the recent changes to analyst estimates for AAPL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. AAPL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AAPL is holding a Forward P/E ratio of 31.11. This valuation marks a premium compared to its industry's average Forward P/E of 8.2.
We can also see that AAPL currently has a PEG ratio of 2.83. 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 2.83 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 97, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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