Apple (AAPL) Laps the Stock Market: Here's Why
In the latest trading session, Apple (AAPL) closed at $214.10, marking a +0.4% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 12.07% over the past month. This has outpaced the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.38% in that time.
The upcoming earnings release of Apple will be of great interest to investors. The company is expected to report EPS of $1.33, up 5.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $83.46 billion, up 2.04% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.59 per share and a revenue of $385.99 billion, signifying shifts of +7.5% and +0.71%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. As of now, Apple holds a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 32.38. For comparison, its industry has an average Forward P/E of 11.63, which means Apple is trading at a premium to the group.
We can additionally observe that AAPL currently boasts a PEG ratio of 2.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry currently had an average PEG ratio of 2.23 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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Apple Inc. (AAPL) : Free Stock Analysis Report
