In the latest trading session, Apple (AAPL - Free Report) closed at $299.80, marking a +0.8% move from the previous day. This change outpaced the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.56%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 11.99% over the past month. This has outpaced the Computer and Technology sector's gain of 6.72% and the S&P 500's gain of 4.69% in that time.
AAPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.51, up 7.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $87.74 billion, up 4.07% from the prior-year quarter.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $13.10 per share and revenue of $275.09 billion. These results would represent year-over-year changes of +10.18% and +5.73%, respectively.
It is also important to note the recent changes to analyst estimates for AAPL. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. AAPL is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 22.71. This represents a premium compared to its industry's average Forward P/E of 16.48.
Investors should also note that AAPL has a PEG ratio of 2.16 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 3.16 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.