Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.5% over the past month, lagging the Computer and Technology sector's gain of 6.47% and outpacing the S&P 500's gain of 3.49% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.97 per share. This would mark a year-over-year decline of 6.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $123.05 billion, down 0.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.23 per share and revenue of $406.37 billion, which would represent changes of +1.96% and +3.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Apple should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.41% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 22.62. This represents a premium compared to its industry's average Forward P/E of 8.32.
We can also see that AAPL currently has a PEG ratio of 1.81. 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 2.43 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 183, putting it in the bottom 28% 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.
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