In the latest trading session, Apple (AAPL) closed at $360.06, marking a -1.77% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.59%. At the same time, the Dow lost 2.72%, and the tech-heavy Nasdaq lost 2.19%.
Investors will be hoping for strength from AAPL as it approaches its next earnings release. The company is expected to report EPS of $1.96, down 10.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $51 billion, down 5.22% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.32 per share and revenue of $262.10 billion. These totals would mark changes of +3.62% and +0.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AAPL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AAPL has a Forward P/E ratio of 29.76 right now. Its industry sports an average Forward P/E of 8.11, so we one might conclude that AAPL is trading at a premium comparatively.
Also, we should mention that AAPL has a PEG ratio of 2.71. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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