Apple (AAPL - Free Report) closed the most recent trading day at $112, moving -1.31% from the previous trading session. This change lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq lost 0.61%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 1.32% over the past month, lagging the Computer and Technology sector's gain of 0.29% and the S&P 500's loss of 0.52% 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 $0.68, down 10.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $62.95 billion, down 1.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $272.32 billion. These totals would mark changes of +8.75% and +4.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AAPL. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate remained stagnant. AAPL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, AAPL is holding a Forward P/E ratio of 35.13. This valuation marks a premium compared to its industry's average Forward P/E of 8.86.
Meanwhile, AAPL's PEG ratio is currently 3.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 3.29 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 33, putting it in the top 13% 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.