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Apple (AAPL) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, Apple (AAPL - Free Report) was up +1.15% at $258.86. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Shares of the maker of iPhones, iPads and other products have depreciated by 0.6% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.47%, and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Apple in its upcoming release. In that report, analysts expect Apple to post earnings of $1.89 per share. This would mark year-over-year growth of 14.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.9 billion, up 14.2% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.43 per share and revenue of $461.01 billion, indicating changes of +13% and +10.78%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. As of now, Apple holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 30.37 right now. Its industry sports an average Forward P/E of 12.33, so one might conclude that Apple is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 2.42. 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. AAPL's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Apple (AAPL - Free Report) was up +1.15% at $258.86. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Shares of the maker of iPhones, iPads and other products have depreciated by 0.6% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.47%, and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Apple in its upcoming release. In that report, analysts expect Apple to post earnings of $1.89 per share. This would mark year-over-year growth of 14.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.9 billion, up 14.2% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.43 per share and revenue of $461.01 billion, indicating changes of +13% and +10.78%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. As of now, Apple holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 30.37 right now. Its industry sports an average Forward P/E of 12.33, so one might conclude that Apple is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 2.42. 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. AAPL's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.