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Apple (AAPL) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw Apple (AAPL - Free Report) ending at $170.03, denoting a -0.85% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.

The maker of iPhones, iPads and other products's stock has dropped by 4.55% in the past month, falling short of the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32%.

Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.50, reflecting a 1.32% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.38 billion, down 4.7% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.55 per share and a revenue of $385.52 billion, signifying shifts of +6.85% and +0.58%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Apple. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.01% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 26.19. This signifies a premium in comparison to the average Forward P/E of 14.06 for its industry.

We can additionally observe that AAPL currently boasts a PEG ratio of 2.07. 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. The Computer - Mini computers industry had an average PEG ratio of 2.53 as trading concluded yesterday.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% of all 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 to follow these and more stock-moving metrics during the upcoming trading sessions.

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