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




 

In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the maker of iPhones, iPads and other products had lost 5.46% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 3.29%.

Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be October 27, 2022. In that report, analysts expect Apple to post earnings of $1.25 per share. This would mark year-over-year growth of 0.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $88.06 billion, up 5.64% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. 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 22.54. This represents a premium compared to its industry's average Forward P/E of 6.53.

Investors should also note that AAPL has a PEG ratio of 1.8 right now. 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 2.1 as of yesterday's close.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

COMMENTS

More Related News

2 women are suing Apple alleging that former partners hid AirTags in a car and a child
2 women are suing Apple alleging that former partners hid AirTags in a car and a child's backpack and used the devices to stalk them

The lawsuit, filed in San Francisco, says the AirTag's $29 price has made it "the weapon of choice of stalkers and abusers."

'The clock has struck midnight in China': Wedbush analyst Dan Ives says Apple needs a new plan after major iPhone supply-chain disruptions

By 2025, 50% of iPhone production could be in these two countries instead, according to Wedbush tech analyst Dan Ives.

Colorado grandmother sues police detective following SWAT raid based on false
Colorado grandmother sues police detective following SWAT raid based on false 'Find my iPhone' ping
  • US
  • 2022-12-05 05:43:34Z

An elderly Colorado woman is suing a Denver police detective who ordered a SWAT raid on her house after it was falsely pinged by Apple's "Find my" app as the

Apple
Apple's latest iPad drops to $399 at Amazon

The base model of Apple's new 10th-generation iPad is back down to $399 for a limited time.

Elon Musk went to war - then made up - with Apple. Here
Elon Musk went to war - then made up - with Apple. Here's what happened.

Musk, the world's richest man and new Twitter owner, declared "war" with the world's biggest tech company: Apple.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy