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Apple (AAPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Apple (AAPL - Free Report) ended the recent trading session at $275.15, demonstrating a -6.12% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Shares of the maker of iPhones, iPads and other products have depreciated by 5.72% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.57%, and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is expected to report EPS of $1.88, up 19.75% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $108.71 billion, indicating a 15.6% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.74 per share and a revenue of $478.03 billion, indicating changes of +17.16% and +14.87%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Apple is currently a Zacks Rank #2 (Buy).
In the context of valuation, Apple is at present trading with a Forward P/E ratio of 33.52. This represents a premium compared to its industry average Forward P/E of 22.99.
Investors should also note that AAPL has a PEG ratio of 2.55 right now. 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. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 2.07.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Apple (AAPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Apple (AAPL - Free Report) ended the recent trading session at $275.15, demonstrating a -6.12% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Shares of the maker of iPhones, iPads and other products have depreciated by 5.72% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.57%, and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is expected to report EPS of $1.88, up 19.75% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $108.71 billion, indicating a 15.6% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.74 per share and a revenue of $478.03 billion, indicating changes of +17.16% and +14.87%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Apple is currently a Zacks Rank #2 (Buy).
In the context of valuation, Apple is at present trading with a Forward P/E ratio of 33.52. This represents a premium compared to its industry average Forward P/E of 22.99.
Investors should also note that AAPL has a PEG ratio of 2.55 right now. 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. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 2.07.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.