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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know

Apple (AAPL) closed at $117.51 in the latest trading session, marking a +1.32% move from the prior day. This change outpaced the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.33%.

Heading into today, shares of the maker of iPhones, iPads and other products had gained 5.36% over the past month, lagging the Computer and Technology sector's gain of 6.61% and outpacing the S&P 500's gain of 3.42% in that time.

AAPL will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. In that report, analysts expect AAPL to post earnings of $0.69 per share. This would mark a year-over-year decline of 9.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.72 billion, down 0.51% from the year-ago period.

Investors might also notice recent changes to analyst estimates for AAPL. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. AAPL currently has a Zacks Rank of #3 (Hold).

Investors should also note AAPL's current valuation metrics, including its Forward P/E ratio of 28.96. This represents a premium compared to its industry's average Forward P/E of 8.83.

It is also worth noting that AAPL currently has a PEG ratio of 2.63. 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. AAPL's industry had an average PEG ratio of 2.63 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 122, which puts it in the top 49% 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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