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Apple (AAPL) Rises Higher Than Market: Key Facts

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Apple (AAPL - Free Report) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.

The the stock of maker of iPhones, iPads and other products has fallen by 0.39% in the past month, leading the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.

Market participants will be closely following the financial results of Apple in its upcoming release. The company plans to announce its earnings on November 2, 2023. It is anticipated that the company will report an EPS of $1.39, marking a 7.75% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $88.87 billion, indicating a 1.42% decline compared to the corresponding quarter of the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% downward. Apple is currently a Zacks Rank #3 (Hold).

In terms of valuation, Apple is currently trading at a Forward P/E ratio of 26.98. This denotes a premium relative to the industry's average Forward P/E of 11.86.

It is also worth noting that AAPL currently has a PEG ratio of 2.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Mini computers industry was having an average PEG ratio of 2.38.

The Computer - Mini computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 201, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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