Apple (AAPL) Gains As Market Dips: What You Should Know




 

Apple (AAPL) closed the most recent trading day at $150.77, moving +0.23% from the previous trading session. This change outpaced the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the maker of iPhones, iPads and other products had lost 8.06% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.

Investors will be hoping for strength from Apple as it approaches its next earnings release. The company is expected to report EPS of $1.25, up 0.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $88.09 billion, up 5.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.10 per share and revenue of $392.28 billion, which would represent changes of +8.73% and +7.23%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of 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 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 0.01% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Apple is currently trading at a Forward P/E ratio of 24.65. This valuation marks a premium compared to its industry's average Forward P/E of 6.21.

Also, we should mention that AAPL has a PEG ratio of 1.95. 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 was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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