Apple (AAPL) closed at $201.00 in the latest trading session, marking a +2.25% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.51%.
The maker of iPhones, iPads and other products's shares have seen a decrease of 2.37% over the last month, not keeping up with the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.
The upcoming earnings release of Apple will be of great interest to investors. The company is forecasted to report an EPS of $1.41, showcasing a 0.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $88.31 billion, indicating a 2.95% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.11 per share and a revenue of $404.19 billion, signifying shifts of +5.33% and +3.36%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the past month, there's been a 0.15% fall in the Zacks Consensus EPS estimate. Apple is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 27.64. For comparison, its industry has an average Forward P/E of 11.04, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.19. 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 average PEG ratio for the Computer - Micro Computers industry stood at 1.47 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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