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

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Apple (AAPL - Free Report) closed at $182.54 in the latest trading session, marking a +1.61% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.82%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.64%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 11.45% over the past month. This has lagged the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 4.58% in that time.

Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. In that report, analysts expect AAPL to post earnings of $2.10 per share. This would mark a year-over-year decline of 10.26%. Meanwhile, our latest consensus estimate is calling for revenue of $53.46 billion, up 0.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.48 per share and revenue of $256.93 billion. These totals would mark changes of -3.61% and -3.26%, respectively, from last year.

Any recent changes to analyst estimates for AAPL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 15.65. For comparison, its industry has an average Forward P/E of 10.11, which means AAPL is trading at a premium to the group.

Meanwhile, AAPL's PEG ratio is currently 1.52. 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 was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.


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