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Apple (AAPL) Stock Drops Despite Market Gains: Important Facts to Note
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The latest trading session saw Apple (AAPL - Free Report) ending at $222.50, denoting a -0.12% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The maker of iPhones, iPads and other products's stock has dropped by 0.87% in the past month, falling short of the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. In that report, analysts expect Apple to post earnings of $1.60 per share. This would mark year-over-year growth of 9.59%. In the meantime, our current consensus estimate forecasts the revenue to be $94.52 billion, indicating a 5.61% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.70 per share and a revenue of $390.63 billion, signifying shifts of +9.3% and +1.92%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Apple. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.37% higher. Apple is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 33.23. This represents a premium compared to its industry's average Forward P/E of 12.05.
It's also important to note that AAPL currently trades at a PEG ratio of 2.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.63.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 29% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Apple (AAPL) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Apple (AAPL - Free Report) ending at $222.50, denoting a -0.12% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The maker of iPhones, iPads and other products's stock has dropped by 0.87% in the past month, falling short of the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. In that report, analysts expect Apple to post earnings of $1.60 per share. This would mark year-over-year growth of 9.59%. In the meantime, our current consensus estimate forecasts the revenue to be $94.52 billion, indicating a 5.61% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.70 per share and a revenue of $390.63 billion, signifying shifts of +9.3% and +1.92%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Apple. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.37% higher. Apple is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 33.23. This represents a premium compared to its industry's average Forward P/E of 12.05.
It's also important to note that AAPL currently trades at a PEG ratio of 2.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.63.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 29% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.