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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know

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Apple (AAPL - Free Report) closed the most recent trading day at $222.98, moving +1.48% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq added 0.99%.

Coming into today, shares of the maker of iPhones, iPads and other products had gained 15.45% in the past month. In that same time, the Computer and Technology sector gained 3.63%, while the S&P 500 gained 3.01%.

Investors will be hoping for strength from AAPL as it approaches its next earnings release, which is expected to be November 1, 2018. In that report, analysts expect AAPL to post earnings of $2.75 per share. This would mark year-over-year growth of 32.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.98 billion, up 15.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.68 per share and revenue of $263.68 billion, which would represent changes of +26.82% and +15.03%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AAPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.42% higher within the past month. AAPL is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, AAPL currently has a Forward P/E ratio of 18.81. This valuation marks a premium compared to its industry's average Forward P/E of 18.24.

Investors should also note that AAPL has a PEG ratio of 1.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 1.81 as of yesterday's close.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.




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