Apple (AAPL - Free Report) closed the most recent trading day at $293.65, moving +0.73% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.3%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 10.36% over the past month. This has outpaced the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 2.69% 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 $2.85 per share. This would mark a year-over-year decline of 31.82%. Meanwhile, our latest consensus estimate is calling for revenue of $87.74 billion, up 4.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.07 per share and revenue of $275.09 billion. These totals would mark changes of +9.92% and +5.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AAPL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. AAPL is currently a Zacks Rank #2 (Buy).
Digging into valuation, AAPL currently has a Forward P/E ratio of 22.3. This valuation marks a premium compared to its industry's average Forward P/E of 9.86.
Investors should also note that AAPL has a PEG ratio of 2.12 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 2.12 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 202, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.