Apple AAPL closed at $215.05 in the latest trading session, marking a +0.06% move from the prior day. This change outpaced the S&P 500’s 0.04% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 0.38%.
Prior to today’s trading, shares of the maker of iPhones, iPads and other products had gained 11.42% over the past month. This has outpaced the Computer and Technology sector’s gain of 0.25% and the S&P 500’s gain of 2.35% in that time.
Investors will be hoping for strength from AAPL as it approaches its next earnings release, which is expected to be November 1, 2018. The company is expected to report EPS of $2.75, up 32.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.98 billion, up 15.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.68 per share and revenue of $263.68 billion, which would represent changes of +26.82% and +15.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AAPL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.45% higher within the past month. AAPL currently has a Zacks Rank of #2 (Buy).
Digging into valuation, AAPL currently has a Forward P/E ratio of 18.41. This represents a premium compared to its industry’s average Forward P/E of 17.87.
It is also worth noting that AAPL currently has a PEG ratio of 1.7. 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. Computer – Mini computers stocks are, on average, holding a PEG ratio of 1.88 based on yesterday’s closing prices.
The Computer – Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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