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In the latest trading session, Apple (AAPL) closed at $126.11, marking a -0.8% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 3.55% over the past month. This has outpaced the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. In that report, analysts expect AAPL to post earnings of $0.99 per share. This would mark year-over-year growth of 52.31%. Meanwhile, our latest consensus estimate is calling for revenue of $72.1 billion, up 20.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.17 per share and revenue of $355.55 billion. These totals would mark changes of +57.62% and +29.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AAPL. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.36% higher. AAPL is currently a Zacks Rank #2 (Buy).
Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 24.57. Its industry sports an average Forward P/E of 16.99, so we one might conclude that AAPL is trading at a premium comparatively.
Meanwhile, AAPL's PEG ratio is currently 1.97. 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. The Computer - Mini computers industry currently had an average PEG ratio of 1.19 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 29, putting it in the top 12% 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.
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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