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




 

Apple (AAPL) closed the most recent trading day at $150.77, moving +0.23% from the previous trading session. This change outpaced the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the maker of iPhones, iPads and other products had lost 8.06% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.

Investors will be hoping for strength from Apple as it approaches its next earnings release. The company is expected to report EPS of $1.25, up 0.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $88.09 billion, up 5.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.10 per share and revenue of $392.28 billion, which would represent changes of +8.73% and +7.23%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Apple is currently trading at a Forward P/E ratio of 24.65. This valuation marks a premium compared to its industry's average Forward P/E of 6.21.

Also, we should mention that AAPL has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

COMMENTS

More Related News

Apple is accelerating plans to move production out of China as protests and riots intensify in response to zero-Covid policies, report says
Apple is accelerating plans to move production out of China as protests and riots intensify in response to zero-Covid policies, report says

The company is ramping up efforts to shift manufacturing to other Asian countries like India and Vietnam in order to distance itself from Foxconn.

Are Mastercard (MA) and Visa (V) Stock Buys Right Now?
Are Mastercard (MA) and Visa (V) Stock Buys Right Now?

At the moment, Mastercard stock is only 9% off its 52-week highs and Visa is trading 7% from its highs. Let's see if a continued rebound is in the cards and ...

Better Buy: AT&T (T), TMobile (TMUS), or Verizon (VZ) Stock
Better Buy: AT&T (T), TMobile (TMUS), or Verizon (VZ) Stock

Let's see how AT&T (T), Verizon (VZ), and TMobile (TMUS) stocks compare and which may be the better buy at the moment.

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

Apple (AAPL) closed the most recent trading day at $147.81, moving -0.34% from the previous trading session.

Just days left to shop Apple Cyber Monday deals on iPads, MacBook laptops, AirPods and more
Just days left to shop Apple Cyber Monday deals on iPads, MacBook laptops, AirPods and more

We've found the best Apple deals on iPads, AirPods, Apple Watches, Beats, MacBook and more. Shop all the best Apple sales.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy