Apple (AAPL) Advances But Lags Market Performance: Key Highlights

On the most recent trading day, Apple (AAPL) concluded at $198.11, marking a modest increase of +0.08% compared to the preceding session. Despite this uptick, the stock fell short of the S&P 500, which posted a 0.27% gain for the day. Meanwhile, the Dow experienced a 0.43% increase, and the Nasdaq, a tech-centric index, recorded a 0.19% uptick.

In the lead-up to today, shares of the renowned manufacturer of iPhones, iPads, and other electronic devices had exhibited a 5.29% gain over the past month. However, this trailed behind the 5.93% increase in the Computer and Technology sector and the S&P 500’s 6.94% surge during the same period.

Investors are eagerly anticipating Apple’s upcoming earnings release, with the company expected to report an EPS of $2.08. This would reflect a 10.64% increase from the same quarter in the prior year. The latest consensus estimate predicts quarterly revenue of $117.31 billion, a marginal uptick of 0.13% from the corresponding year-ago period.

Looking at the annual forecast, Zacks Consensus Estimates project earnings of $6.56 per share and revenue of $393.42 billion. These figures represent shifts of +7.01% and +2.65%, respectively, compared to the previous year.

Investors should pay attention to any recent adjustments in analyst estimates for Apple, as these revisions reflect the evolving landscape of short-term business trends. Positive changes in estimates convey analysts’ confidence in the company’s business performance and profit potential.

Empirical research indicates a direct correlation between estimate revisions and impending stock price performance. To capitalize on this, the Zacks Rank was established, a quantitative model incorporating these estimate changes to provide a viable rating system.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and boasts a notable, externally audited track record of success. #1 stocks have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate for Apple has increased by 0.12%, earning the stock a current Zacks Rank of #3 (Hold).

In terms of valuation, Apple is presently trading at a Forward P/E ratio of 30.16, indicating a premium relative to the industry’s average Forward P/E of 12.24.

Additionally, AAPL showcases a PEG ratio of 2.73, a metric akin to the renowned P/E ratio but incorporating the stock’s anticipated earnings growth rate. In comparison, Computer – Mini computers stocks, on average, maintain a PEG ratio of 2.73 based on yesterday’s closing prices.

The Computer – Mini computers industry falls under the broader Computer and Technology sector, holding a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the strength of individual industry groups by measuring the average Zacks Rank of the constituent stocks. Research indicates that the top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1.

For those tracking AAPL in the forthcoming trading sessions, Zacks.com provides valuable insights. If you’re interested in the latest recommendations from Zacks Investment Research, you can download “7 Best Stocks for the Next 30 Days” today.

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