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

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Apple (AAPL - Free Report) closed the most recent trading day at $175.06, moving -1.89% from the previous trading session. This change lagged the S&P 500's daily loss of 1.26%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.44%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 12.02% over the past month. This has outpaced the Computer and Technology sector's gain of 8.72% and the S&P 500's gain of 6.07% in that time.

Apple will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $1.43, up 2.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $94.32 billion, up 5.28% from the prior-year quarter.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $397.39 billion. These results would represent year-over-year changes of +9.8% and +8.63%, respectively.

Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Apple is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 28.96 right now. Its industry sports an average Forward P/E of 18.78, so we one might conclude that Apple is trading at a premium comparatively.

It is also worth noting that AAPL currently has a PEG ratio of 2.32. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.24 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 108, which puts it in the top 43% 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.

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


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