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

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Apple (AAPL - Free Report) closed at $174.24 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.01%.

Coming into today, shares of the maker of iPhones, iPads and other products had lost 17.73% in the past month. In that same time, the Computer and Technology sector lost 1.56%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $4.76, up 22.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $91.94 billion, up 4.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.35 per share and revenue of $278.75 billion. These totals would mark changes of +12.09% and +4.95%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AAPL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 1.25% lower. AAPL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AAPL is holding a Forward P/E ratio of 13.08. Its industry sports an average Forward P/E of 14.47, so we one might conclude that AAPL is trading at a discount comparatively.

Also, we should mention that AAPL has a PEG ratio of 1.25. 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 1.64 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 54, which puts it in the top 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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