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

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Apple (AAPL - Free Report) closed at $221.03 in the latest trading session, marking a +1.54% move from the prior day. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.05%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.62% over the past month, outpacing the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.85% in that time.

Investors will be hoping for strength from AAPL as it approaches its next earnings release. On that day, AAPL is projected to report earnings of $2.83 per share, which would represent a year-over-year decline of 2.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.63 billion, down 0.43% from the year-ago period.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $11.69 per share and revenue of $258.48 billion. These results would represent year-over-year changes of -1.85% and -2.68%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.38% higher within the past month. AAPL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AAPL is currently trading at a Forward P/E ratio of 18.63. This represents a premium compared to its industry's average Forward P/E of 8.78.

Meanwhile, AAPL's PEG ratio is currently 1.79. 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 1.79 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 52, which puts it in the top 21% 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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