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

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Apple (AAPL - Free Report) closed at $280.41 in the latest trading session, marking a +0.2% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.78% over the past month, outpacing the Computer and Technology sector's gain of 2.71% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from AAPL as it approaches its next earnings release. In that report, analysts expect AAPL to post earnings of $4.51 per share. This would mark year-over-year growth of 7.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $87.74 billion, up 4.07% from the year-ago period.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $13.07 per share and revenue of $275.09 billion. These results would represent year-over-year changes of +9.92% and +5.73%, 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.

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 0.11% higher. AAPL is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AAPL has a Forward P/E ratio of 21.41 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.96.

Investors should also note that AAPL has a PEG ratio of 2.04 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. AAPL's industry had an average PEG ratio of 2.04 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 197, putting it in the bottom 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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