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Apple (AAPL) Gains As Market Dips: What You Should Know
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Apple (AAPL - Free Report) closed the most recent trading day at $170.17, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 2.74% over the past month. This has lagged the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 5.04% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.43 per share. This would mark year-over-year growth of 2.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $94.32 billion, up 5.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.16 per share and revenue of $397.39 billion. These totals would mark changes of +9.8% and +8.63%, respectively, from last year.
Any recent changes to analyst estimates for Apple should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 0.27% higher. Apple currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Apple is holding a Forward P/E ratio of 27.4. For comparison, its industry has an average Forward P/E of 18.17, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.19. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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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Apple (AAPL) Gains As Market Dips: What You Should Know
Apple (AAPL - Free Report) closed the most recent trading day at $170.17, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 2.74% over the past month. This has lagged the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 5.04% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.43 per share. This would mark year-over-year growth of 2.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $94.32 billion, up 5.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.16 per share and revenue of $397.39 billion. These totals would mark changes of +9.8% and +8.63%, respectively, from last year.
Any recent changes to analyst estimates for Apple should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 0.27% higher. Apple currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Apple is holding a Forward P/E ratio of 27.4. For comparison, its industry has an average Forward P/E of 18.17, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.19. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.