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In the latest trading session, Apple (AAPL) closed at $213.49, marking a +1.82% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 2.13%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 2.61%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 13.19% over the past month, outpacing the Computer and Technology sector's loss of 13.29% and lagging the S&P 500's loss of 9.57% in that time.
Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.61, reflecting a 5.23% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $93.67 billion, up 3.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.26 per share and revenue of $406.43 billion, indicating changes of +7.56% and +3.94%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Apple is presently trading at a Forward P/E ratio of 28.87. This valuation marks a premium compared to its industry's average Forward P/E of 11.53.
We can also see that AAPL currently has a PEG ratio of 2.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.45.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.