Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Apple (AAPL - Free Report) closed at $163.76, marking a -0.61% move from the previous day. This change lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.61%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 8.77% over the past month, outpacing the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.09% in that time.

Apple will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, up 11.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $117.94 billion, up 5.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.77 per share and revenue of $385.34 billion, which would represent changes of +2.85% and +5.34%, respectively, from the prior year.

Any recent changes to analyst estimates for Apple should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Apple is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Apple is holding a Forward P/E ratio of 28.55. This valuation marks a premium compared to its industry's average Forward P/E of 18.66.

We can also see that AAPL currently has a PEG ratio of 2.28. 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 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 76, putting it in the top 30% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Apple Inc. (AAPL) - free report >>

Published in