In the latest market close, Apple (AAPL) concluded trading at $169.71, experiencing a -0.67% movement compared to the previous day.
This performance trailed behind the S&P 500’s daily loss of 0.28%. Meanwhile, the Dow Jones Industrial Average recorded a decline of 0.08%, and the technology-focused Nasdaq Composite decreased by 0.42%.
Despite being the producer of iPhones, iPads, and other renowned products, Apple’s shares have observed a decrease of 5.69% over the last month, failing to keep pace with the Computer and Technology sector’s gain of 3.64% and the S&P 500’s gain of 2.67%.
Analysts predict the company to post an EPS of $1.50, indicating a 1.32% decline compared to the same quarter last year.
Concurrently, our current consensus estimate forecasts revenue to be $90.38 billion, reflecting a 4.7% decline compared to the corresponding quarter of the previous year.
For the entire year, Zacks Consensus Estimates anticipate earnings of $6.55 per share and revenue of $385.52 billion, signifying changes of +6.85% and +0.58%, respectively, compared to the previous year.
It’s imperative for investors to monitor any recent changes in analyst estimates for Apple, as these revisions often mirror the evolving short-term business trends.
Such upward revisions in estimates indicate analysts’ optimism toward the company’s business operations and profit generation capabilities.
Our research demonstrates a direct correlation between these estimated changes and near-term stock prices. To leverage this, we’ve devised the Zacks Rank, a distinctive model integrating these estimate changes to offer a pragmatic rating system.
The Zacks Rank, ranging from #1 (Strong Buy) to #5 (Strong Sell), boasts a noteworthy track record of outperformance, validated by third-party audits. Stocks rated #1 have produced an average annual return of +25% since 1988.
Over the past 30 days, our consensus EPS projection has risen by 0.01%.
Assessing its valuation, Apple maintains a Forward P/E ratio of 26.09, surpassing the industry’s average Forward P/E of 14.02, indicating that Apple is trading at a premium to its peers.
Moreover, AAPL presently has a PEG ratio of 2.06, which incorporates the company’s anticipated earnings growth rate alongside the commonly used P/E ratio.
At the close of yesterday’s trading, the Computer – Mini computers industry had an average PEG ratio of 2.51.
