Apple (AAPL) closed on the most recent trading day at $ 144.47, or -0.44% from the previous trading session. This change was smaller than the S&P 500’s 0.35% gain on the day.
Prior to today’s trading, shares in the maker of iPhones, iPads and other products had gained 13.95% in the past month. This topped the 5.62% gain of the IT and tech sector and the 3.64% gain of the S&P 500 during this period.
AAPL will look to show some strength as it approaches its next earnings release, which is expected to be July 27, 2021. On that day, AAPL is expected to report earnings of $ 1 per share, which would represent growth of year on year by 53.85%. Meanwhile, our latest consensus estimate projects revenue of $ 72.75 billion, up 21.88% from the previous year’s quarter.
For the full year, our Zacks consensus estimates project earnings of $ 5.18 per share and revenue of $ 356.27 billion, which would represent changes of + 57.93% and + 29.78%, respectively, over the previous year.
It’s also important to note the recent changes to analyst estimates for the AAPL. These revisions help show the ever-changing nature of short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of +25. % since 1988. Over the past 30 days, our consensus EPS forecast has increased 0.19%. AAPL currently sports a Zacks rank of # 2 (Buy).
In terms of valuation, AAPL is currently trading at a forward P / E ratio of 27.99. For comparison, its industry has an average forward P / E of 18.75, which means AAPL is trading at a premium to the group.
We can also see that AAPL currently has a PEG ratio of 2.24. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. The AAPL industry had an average PEG ratio of 1.28 at yesterday’s close.
The Information Technology – Minicomputers industry is part of the Information Technology and Technology sector. This group has a Zacks Industry Rank of 21, placing it in the top 9% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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Apple Inc. (AAPL): Free Stock Analysis Report
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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.
