Apple (AAPL) ended the recent trading session at $256.87, demonstrating a +1.81% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.5%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 9.47% outpaced the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. It is anticipated that the company will report an EPS of $1.74, marking a 6.1% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $101.13 billion, reflecting a 6.53% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.36 per share and a revenue of $412.1 billion, representing changes of +9.04% and +5.39%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Right now, Apple possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Apple is currently being traded at a Forward P/E ratio of 34.29. This signifies a premium in comparison to the average Forward P/E of 13.27 for its industry.
It is also worth noting that AAPL currently has a PEG ratio of 2.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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