Apple (AAPL) closed at $133.98 in the latest trading session, marking a +1.27% move from the prior day. This change outpaced the S&P 500’s 0.51% gain on the day.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.09% over the past month, lagging the Computer and Technology sector’s gain of 6.2% and outpacing the S&P 500’s gain of 1.75% in that time.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. The company is expected to report EPS of $0.99, up 52.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $72.75 billion, up 21.88% from the year-ago period.
AAPL’s full-year Zacks Consensus Estimates are calling for earnings of $5.17 per share and revenue of $355.55 billion. These results would represent year-over-year changes of +57.62% and +29.52%, respectively.
Any recent changes to analyst estimates for AAPL 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.36% higher. AAPL is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AAPL currently has a Forward P/E ratio of 25.57. This represents a premium compared to its industry’s average Forward P/E of 17.29.
We can also see that AAPL currently has a PEG ratio of 2.05. 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 was holding an average PEG ratio of 1.13 at yesterday’s closing price.
The Computer – Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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