Apple (AAPL) Laps the Stock Market: Here's Why
Apple (AAPL) closed the latest trading day at $227.52, indicating a +0.51% change from the previous session's end. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.6%.
Shares of the maker of iPhones, iPads and other products have depreciated by 0.05% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.
Analysts and investors alike will be keeping a close eye on the performance of Apple in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.60, marking a 9.59% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $94.52 billion, indicating a 5.61% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.70 per share and a revenue of $390.63 billion, indicating changes of +9.3% and +1.92%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. At present, Apple boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 33.77. Its industry sports an average Forward P/E of 14.24, so one might conclude that Apple is trading at a premium comparatively.
It's also important to note that AAPL currently trades at a PEG ratio of 2.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 1.77.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 29% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Apple Inc. (AAPL) : Free Stock Analysis Report