Apple (AAPL) closed the most recent trading day at $141.66, making no change from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.3%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 5.33% in the past month. In that same time, the Computer and Technology sector gained 3.24%, while the S&P 500 lost 0.62%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. In that report, analysts expect Apple to post earnings of $1.14 per share. This would mark a year-over-year decline of 12.31%. Our most recent consensus estimate is calling for quarterly revenue of $82.36 billion, up 1.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $394.45 billion. These totals would mark changes of +8.91% and +7.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Apple. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Apple is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 23.2. Its industry sports an average Forward P/E of 8.17, so we one might conclude that Apple is trading at a premium comparatively.
Meanwhile, AAPL’s PEG ratio is currently 1.86. 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. AAPL’s industry had an average PEG ratio of 1.95 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 224, putting it in the bottom 12% 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.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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