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.