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Apple (AAPL) Outperforms Broader Market: What You Need to Know
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Apple (AAPL - Free Report) closed at $337.30 in the latest trading session, marking a +1.47% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.14%. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.69%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.92% over the past month, outpacing the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Apple in its upcoming earnings disclosure. On that day, Apple is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 7.57%. In the meantime, our current consensus estimate forecasts the revenue to be $112.84 billion, indicating a 10.12% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.85 per share and revenue of $477.91 billion. These totals would mark changes of +18.63% and +14.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 0.18% lower. Right now, Apple possesses a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 37.43. This expresses a premium compared to the average Forward P/E of 21.45 of its industry.
It is also worth noting that AAPL currently has a PEG ratio of 2.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.76.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.
View the Zacks #1 Rank List
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Apple (AAPL) Outperforms Broader Market: What You Need to Know
Apple (AAPL - Free Report) closed at $337.30 in the latest trading session, marking a +1.47% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.14%. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.69%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.92% over the past month, outpacing the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Apple in its upcoming earnings disclosure. On that day, Apple is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 7.57%. In the meantime, our current consensus estimate forecasts the revenue to be $112.84 billion, indicating a 10.12% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.85 per share and revenue of $477.91 billion. These totals would mark changes of +18.63% and +14.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 0.18% lower. Right now, Apple possesses a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 37.43. This expresses a premium compared to the average Forward P/E of 21.45 of its industry.
It is also worth noting that AAPL currently has a PEG ratio of 2.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.76.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.