In the latest trading session, Apple (AAPL) closed at $388, marking a -1.38% move from the previous day. This change lagged the S&P 500’s 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 9.63% in the past month. In that same time, the Computer and Technology sector gained 7.91%, while the S&P 500 gained 5.15%.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be July 30, 2020. In that report, analysts expect AAPL to post earnings of $1.99 per share. This would mark a year-over-year decline of 8.72%. Our most recent consensus estimate is calling for quarterly revenue of $51.13 billion, down 4.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.35 per share and revenue of $262.67 billion. These totals would mark changes of +3.87% and +0.96%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAPL. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% higher. AAPL currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AAPL currently has a Forward P/E ratio of 31.87. For comparison, its industry has an average Forward P/E of 8.41, which means AAPL is trading at a premium to the group.
We can also see that AAPL currently has a PEG ratio of 2.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Computer – Mini computers industry currently had an average PEG ratio of 2.9 as of yesterday’s close.
The Computer – Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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