Apple (AAPL - Free Report) closed the most recent trading day at $221.07, moving -1.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.23%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 6.72% in the past month. In that same time, the Computer and Technology sector gained 1.5%, while the S&P 500 gained 2.16%.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be November 1, 2018. On that day, AAPL is projected to report earnings of $2.75 per share, which would represent year-over-year growth of 32.85%. Our most recent consensus estimate is calling for quarterly revenue of $60.98 billion, up 15.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.74 per share and revenue of $263.68 billion. These totals would mark changes of +27.47% and +15.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAPL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.53% higher. AAPL currently has a Zacks Rank of #2 (Buy).
Digging into valuation, AAPL currently has a Forward P/E ratio of 19.06. For comparison, its industry has an average Forward P/E of 18.5, which means AAPL is trading at a premium to the group.
Investors should also note that AAPL has a PEG ratio of 1.97 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.