In the latest trading session, Apple (AAPL) closed at $220.96, marking a -0.81% move from the previous day. This move lagged the S&P 500's daily of 0%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq gained 0.07%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.76% over the past month, outpacing the Computer and Technology sector's gain of 4.17% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from AAPL as it approaches its next earnings release. The company is expected to report EPS of $2.83, down 2.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $62.55 billion, down 0.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.69 per share and revenue of $258.28 billion, which would represent changes of -1.85% and -2.76%, respectively, from the prior year.
Any recent changes to analyst estimates for AAPL should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.37% higher. AAPL is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 19.07. This valuation marks a premium compared to its industry's average Forward P/E of 9.1.
It is also worth noting that AAPL currently has a PEG ratio of 1.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 1.83 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 55, putting it in the top 22% 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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