Apple (AAPL) outpaces stock market gains: what you need to know
Apple (AAPL) closed at $173.07 last trading session, marking a +0.51% move from the previous day. The stock topped the S&P 500 daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.
Today, shares of the maker of iPhones, iPads and other products have gained 1.13% over the past month. Over the same period, the IT & Technology sector lost 2.99%, while the S&P 500 gained 0.64%.
Wall Street will be looking for positivity from Apple as its next earnings report date approaches. That should be January 27, 2022. On that day, Apple is expected to report earnings of $1.89 per share, which would represent 12.5% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $118.13 billion, up 6.01% from the prior year period.
Zacks consensus estimates for the full year from AAPL call for earnings of $5.82 per share and revenue of $385.14 billion. These results would represent year-over-year variations of +3.74% and +5.28%, respectively.
Any recent changes in analyst estimates for Apple should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has increased by 0.42%. Apple is currently a Zacks Rank #2 (Buy).
Investors should also note Apple’s current valuation metrics, including its Forward P/E ratio of 29.75. Its industry sports an average Forward P/E of 19.5, so we could conclude that Apple is trading at a premium comparatively.
It should also be noted that AAPL currently has a PEG ratio of 2.38. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The PC-minicomputer industry currently had an average PEG ratio of 2.65 at yesterday’s close.
The Computing – Minicomputers industry is part of the Computing and Technology sector. This industry currently has a Zacks industry ranking of 54, which places it in the top 22% of over 250 industries.
The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.