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Apple (AAPL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Apple (AAPL - Free Report) closed at $121.78, marking a -0.51% move from the previous day. This move lagged the S&P 500's daily loss of 0.44%. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq gained 0.5%.

Coming into today, shares of the maker of iPhones, iPads and other products had gained 2.68% in the past month. In that same time, the Computer and Technology sector gained 4.57%, while the S&P 500 gained 2.71%.

Investors will be hoping for strength from AAPL as it approaches its next earnings release. In that report, analysts expect AAPL to post earnings of $1.39 per share. This would mark year-over-year growth of 11.2%. Our most recent consensus estimate is calling for quarterly revenue of $102.69 billion, up 11.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $319.88 billion. These totals would mark changes of +22.26% and +16.53%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AAPL currently has a Zacks Rank of #3 (Hold).

Digging into valuation, AAPL currently has a Forward P/E ratio of 30.5. Its industry sports an average Forward P/E of 8.72, so we one might conclude that AAPL is trading at a premium comparatively.

Investors should also note that AAPL has a PEG ratio of 2.65 right now. 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. AAPL's industry had an average PEG ratio of 1.61 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 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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

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