Apple (AAPL) Laps the Stock Market: Here's Why

In the latest market close, Apple (AAPL) reached $223.19, with a +0.48% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.87%.

The the stock of maker of iPhones, iPads and other products has fallen by 6.68% in the past month, leading the Computer and Technology sector’s loss of 8.94% and undershooting the S&P 500’s loss of 5.59%.

The upcoming earnings release of Apple will be of great interest to investors. The company’s earnings report is expected on April 24, 2025. The company is forecasted to report an EPS of $1.61, showcasing a 5.23% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $93.67 billion, up 3.22% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.26 per share and a revenue of $406.43 billion, signifying shifts of +7.56% and +3.94%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Apple. Recent revisions tend to reflect the latest 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 take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. As of now, Apple holds a Zacks Rank of #3 (Hold).

With respect to valuation, Apple is currently being traded at a Forward P/E ratio of 30.58. For comparison, its industry has an average Forward P/E of 10.59, which means Apple is trading at a premium to the group.

It is also worth noting that AAPL currently has a PEG ratio of 2.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Computer – Micro Computers industry currently had an average PEG ratio of 1.5 as of yesterday’s close.