Send me real-time posts from this site at my email
Zacks

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

Apple (AAPL) closed the most recent trading day at $132.03, moving -1.79% from the previous trading session. This move lagged the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 7.06% over the past month. This has lagged the Computer and Technology sector's gain of 9.72% and outpaced the S&P 500's gain of 5.07% in that time.

AAPL will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2021. In that report, analysts expect AAPL to post earnings of $0.99 per share. This would mark year-over-year growth of 54.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $77.39 billion, up 32.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $336.77 billion, which would represent changes of +36.89% and +22.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AAPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. AAPL is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AAPL has a Forward P/E ratio of 29.93 right now. This represents a premium compared to its industry's average Forward P/E of 20.42.

Also, we should mention that AAPL has a PEG ratio of 2.39. 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 1.8 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 198, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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): Get Free Report
 
To read this article on Zacks.com click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue