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Apple (AAPL) Rises Higher Than Market: Key Facts

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Apple (AAPL - Free Report) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.

Shares of the maker of iPhones, iPads and other products have appreciated by 6.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 4.91%.

Market participants will be closely following the financial results of Apple in its upcoming release. It is anticipated that the company will report an EPS of $2.08, marking a 10.64% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $117.31 billion, indicating a 0.13% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $393.42 billion, which would represent changes of +7.01% and +2.65%, respectively, from 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Apple currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 29.6. This indicates a premium in contrast to its industry's Forward P/E of 11.72.

Also, we should mention that AAPL has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry had an average PEG ratio of 2.68 as trading concluded yesterday.

The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.

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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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