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

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Apple (AAPL - Free Report) closed at $146.55 in the latest trading session, marking a +1.18% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 0.84% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.7% and lagged the S&P 500's loss of 0.12% in that time.

Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be October 28, 2021. In that report, analysts expect AAPL to post earnings of $1.23 per share. This would mark year-over-year growth of 68.49%. Meanwhile, our latest consensus estimate is calling for revenue of $84.95 billion, up 31.3% from the prior-year quarter.

Any recent changes to analyst estimates for AAPL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AAPL currently has a Zacks Rank of #3 (Hold).

Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 25.38. For comparison, its industry has an average Forward P/E of 16.48, which means AAPL is trading at a premium to the group.

Investors should also note that AAPL has a PEG ratio of 2.03 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. The Computer - Mini computers industry currently had an average PEG ratio of 1.13 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 30, putting it in the top 12% 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.

To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.


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