In the last trading session, Apple (AAPL) closed at $ 126.11, marking a movement of -0.8% from the previous day. This move fell behind the S&P 500’s 0.47% daily gain.
Prior to today’s stock market, shares in the maker of iPhones, iPads and other products had gained 3.55% in the past month. This exceeded the 2.06% gain of the IT and tech sector and the 0.12% loss of the S&P 500 during this period.
Wall Street will look for the positivity of the AAPL as the date of its next earnings report approaches. In this report, analysts expect AAPL to post earnings of $ 0.99 per share. That would mark year-over-year growth of 52.31%. Meanwhile, our latest consensus estimate projects revenue of $ 72.1 billion, up 20.8% from the previous year’s quarter.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 5.17 per share and revenue of $ 355.55 billion. These totals would mark changes of + 57.62% and + 29.52%, respectively, from a year ago.
It’s also important to note the recent changes to analyst estimates for the AAPL. Recent revisions tend to reflect the latest short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. In the past 30 days, our consensus EPS forecast has risen 1.36%. AAPL is currently a Zacks Rank # 2 (Buy).
Investors should also note AAPL’s current valuation metrics, including its forward P / E ratio of 24.57. Its industry is posting an average forward P / E of 16.99, so one could conclude that the AAPL is trading at a comparatively premium.
Meanwhile, AAPL’s PEG ratio is currently 1.97. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. The Computers – Minicomputers industry currently had an average PEG ratio of 1.19 at yesterday’s close.
The Information Technology – Minicomputers industry is part of the Information Technology and Technology sector. This group has a Zacks Industry Rank of 29, placing it in the top 12% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.
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