Apple (AAPL) Dips More Than Broader Markets: What You Should Know




 

In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. This change lagged the S&P 500's 0.12% loss on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.79% over the past month, lagging the Computer and Technology sector's gain of 8.67% and outpacing the S&P 500's gain of 5.93% in that time.

Investors will be hoping for strength from Apple as it approaches its next earnings release. On that day, Apple is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 6.19%. Our most recent consensus estimate is calling for quarterly revenue of $123.05 billion, down 0.72% from the year-ago period.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion. These results would represent year-over-year changes of +2.13% and +3.25%, respectively.

It is also important to note the recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 1.61% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 23.78 right now. For comparison, its industry has an average Forward P/E of 8.79, which means Apple is trading at a premium to the group.

Investors should also note that AAPL has a PEG ratio of 1.9 right now. 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. The Computer - Mini computers was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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