Apple (AAPL) closed the most recent trading day at $174.72, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.42%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 15.84% in the past month. In that same time, the Computer and Technology sector lost 1.79%, while the S&P 500 lost 1.1%.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $4.74, up 21.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $91.92 billion, up 4.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.32 per share and revenue of $278.54 billion, which would represent changes of +11.84% and +4.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AAPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.28% lower within the past month. AAPL currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AAPL is holding a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 15.06, which means AAPL is trading at a discount to the group.
Investors should also note that AAPL has a PEG ratio of 1.27 right now. 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. The Computer - Mini computers industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.
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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.