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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know

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Apple (AAPL - Free Report) closed at $128.80 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.04%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.28%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 5.91% over the past month, outpacing the Computer and Technology sector's gain of 4.2% and the S&P 500's gain of 3.84% in that time.

AAPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.39, up 11.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $102.61 billion, up 11.75% from the prior-year quarter.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $4.03 per share and revenue of $320.73 billion. These results would represent year-over-year changes of +22.87% and +16.83%, 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 0.29% higher. AAPL is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 32.04. This valuation marks a premium compared to its industry's average Forward P/E of 21.32.

Meanwhile, AAPL's PEG ratio is currently 2.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.29 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 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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