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

Apple (AAPL) ended the recent trading session at $214.10, demonstrating a -0.53% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.

The the stock of maker of iPhones, iPads and other products has fallen by 12.1% in the past month, lagging the Computer and Technology sector's loss of 12% and the S&P 500's loss of 7.48%.

Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.61, indicating a 5.23% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $93.67 billion, showing a 3.22% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.26 per share and revenue of $406.43 billion, indicating changes of +7.56% and +3.94%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Apple. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. Currently, Apple is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Apple is currently being traded at a Forward P/E ratio of 29.63. This signifies a premium in comparison to the average Forward P/E of 11.97 for its industry.

It is also worth noting that AAPL currently has a PEG ratio of 2.14. 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 1.5.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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