Apple (AAPL - Free Report) closed at $150 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.94%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 10.92% over the past month, lagging the Computer and Technology sector's loss of 1.88% and the S&P 500's loss of 1.47% in that time.
AAPL will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. On that day, AAPL is projected to report earnings of $4.17 per share, which would represent year-over-year growth of 7.2%. Meanwhile, our latest consensus estimate is calling for revenue of $84.10 billion, down 4.75% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.10 per share and revenue of $259.29 billion, which would represent changes of +1.6% and -2.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AAPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 9.23% lower within the past month. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 12.59. For comparison, its industry has an average Forward P/E of 14.42, which means AAPL is trading at a discount to the group.
Investors should also note that AAPL has a PEG ratio of 1.44 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. The Computer - Mini computers industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.