Apple (AAPL) closed the most recent trading day at $ 128.14, up 1.17% from the previous trading session. The stock topped the S&P 500 daily loss by 0.39%. Meanwhile, the Dow Jones gained 0.12% and the Nasdaq, a very technological index, lost 0.1%.
Coming in today, shares of the maker of iPhones, iPads and other products had gained 6.76% over the past month. At the same time, the computer and technology sector gained 7.06%, while the S&P 500 rose 4.06%.
Wall Street will look for the positivity of AAPL as its next results release date approaches. In this report, analysts expect AAPL to post earnings of $ 1.39 per share. This would mark an annual growth of 11.2%. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 102.61 billion, up 11.75% from the previous year.
Looking at the full year, our Zacks consensus estimates suggest that analysts expect earnings of $ 4.03 per share and revenue of $ 320.73 billion. These totals would mark changes of + 22.87% and + 16.83%, respectively, compared to last year.
Investors should also take note of any recent changes in analyst estimates for AAPL. These revisions help show the ever-changing nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign of the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks rank. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Ranging from # 1 (strong buy) to # 5 (strong sell), Zacks’ ranking system has a proven track record of outperforming, with # 1 stocks averaging + 25% per year since 1988 In the past month, Zacks’ consensus estimate of EPS has risen 0.29%. AAPL currently has a Zacks rank of # 3 (Hold).
Investors should also take note of AAPL’s current valuation metrics, including its forward P / E ratio of 31.47. Its industry has an average forward P / E of 9.94, so we could conclude that AAPL is trading at a comparatively premium.
In addition, it should be mentioned that the AAPL has a PEG ratio of 2.74. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected growth rate of the company’s earnings. AAPL’s industry had an average PEG ratio of 1.69 at yesterday’s close.
The Computer Industry – Minicomputers is part of the computer and technology sector. This group has a Zacks industry rank of 43, which places it in the top 17% of the 250+ industries.
The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information about all of these measures, and more, at Zacks.com.
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