Apple (AAPL) closed at $245.52 in the latest trading session, marking a -0.55% move from the prior day. This move lagged the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 2.39%, and the Nasdaq, a tech-heavy index, lost 0.45%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 14.3% over the past month, outpacing the Computer and Technology sector's loss of 18.62% and the S&P 500's loss of 24.07% in that time.
Investors will be hoping for strength from AAPL as it approaches its next earnings release. The company is expected to report EPS of $2.41, down 2.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $57.37 billion, down 1.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.06 per share and revenue of $272.50 billion, which would represent changes of +9.84% and +4.74%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AAPL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.34% lower within the past month. AAPL is currently a Zacks Rank #3 (Hold).
Digging into valuation, AAPL currently has a Forward P/E ratio of 18.91. Its industry sports an average Forward P/E of 7.8, so we one might conclude that AAPL is trading at a premium comparatively.
Meanwhile, AAPL's PEG ratio is currently 1.8. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.