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Apple (AAPL) Gains But Lags Market: What You Should Know
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In the latest trading session, Apple (AAPL - Free Report) closed at $244.93, marking a +1.67% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.24%, and the Nasdaq, a tech-heavy index, added 1.72%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 20.42% in the past month. In that same time, the Computer and Technology sector lost 12.66%, while the S&P 500 lost 16.08%.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. On that day, AAPL is projected to report earnings of $2.23 per share, which would represent a year-over-year decline of 9.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $55.20 billion, down 4.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.66 per share and revenue of $267.17 billion. These totals would mark changes of +6.48% and +2.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 6.78% lower within the past month. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AAPL currently has a Forward P/E ratio of 19.03. For comparison, its industry has an average Forward P/E of 7.07, which means AAPL is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 1.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 1.78 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 17, putting it in the top 7% 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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Apple (AAPL) Gains But Lags Market: What You Should Know
In the latest trading session, Apple (AAPL - Free Report) closed at $244.93, marking a +1.67% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.24%, and the Nasdaq, a tech-heavy index, added 1.72%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 20.42% in the past month. In that same time, the Computer and Technology sector lost 12.66%, while the S&P 500 lost 16.08%.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. On that day, AAPL is projected to report earnings of $2.23 per share, which would represent a year-over-year decline of 9.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $55.20 billion, down 4.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.66 per share and revenue of $267.17 billion. These totals would mark changes of +6.48% and +2.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 6.78% lower within the past month. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AAPL currently has a Forward P/E ratio of 19.03. For comparison, its industry has an average Forward P/E of 7.07, which means AAPL is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 1.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 1.78 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 17, putting it in the top 7% 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.