In the latest trading session, Apple (AAPL) closed at $234.35, marking a -1.48% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.37%.
The maker of iPhones, iPads and other products's shares have seen an increase of 4.71% over the last month, surpassing the Computer and Technology sector's gain of 2.4% and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Apple in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.74, indicating a 6.1% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $100.8 billion, reflecting a 6.19% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.35 per share and revenue of $411.87 billion, which would represent changes of +8.89% and +5.33%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Apple. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% increase. Apple is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Apple is currently being traded at a Forward P/E ratio of 32.35. This expresses a premium compared to the average Forward P/E of 12.13 of its industry.
Investors should also note that AAPL has a PEG ratio of 2.48 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.56.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 17, positioning it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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