In the latest trading session, Apple (AAPL) closed at $142.53, marking a +1.01% move from the previous day. This change outpaced the S&P 500’s 0.07% loss on the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.
Prior to today’s trading, shares of the maker of iPhones, iPads and other products had gained 7.01% over the past month. This has lagged the Computer and Technology sector’s gain of 11.67% and outpaced the S&P 500’s gain of 4.64% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be February 2, 2023. On that day, Apple is projected to report earnings of $1.93 per share, which would represent a year-over-year decline of 8.1%. Our most recent consensus estimate is calling for quarterly revenue of $120.9 billion, down 2.46% from the year-ago period.
AAPL’s full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. These results would represent year-over-year changes of +1.31% and +2.46%, respectively.
Any recent changes to analyst estimates for Apple should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.05% higher 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 22.81 right now. This represents a premium compared to its industry’s average Forward P/E of 8.6.
Also, we should mention that AAPL has a PEG ratio of 1.82. 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. AAPL’s industry had an average PEG ratio of 2.48 as of yesterday’s close.
The Computer – Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
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