Apple (AAPL) Dips More Than Broader Market: What You Should Know
In the latest trading session, Apple (AAPL) closed at $228.30, marking a -0.25% move from the previous day. This change lagged the S&P 500’s 0.19% loss on the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 1.93% over the past month, outpacing the Computer and Technology sector’s loss of 0.09% and lagging the S&P 500’s gain of 2.06% in that time.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is predicted to post an EPS of $1.60, indicating a 9.59% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $94.52 billion, indicating a 5.61% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.70 per share and a revenue of $390.63 billion, representing changes of +9.3% and +1.92%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Apple presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 34.14. This indicates a premium in contrast to its industry’s Forward P/E of 12.65.
We can also see that AAPL currently has a PEG ratio of 2.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As the market closed yesterday, the Computer – Micro Computers industry was having an average PEG ratio of 1.72.
The Computer – Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 176, placing it within the bottom 31% of over 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.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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