Apple Stock Trading Even Lower Amid Legal Troubles


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.

Investors are eagerly awaiting Apple’s upcoming earnings release. (Credits: Apple)

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.

Currently, Apple holds a Zacks Rank of #3 (Hold). (Credits: Apple)

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.

Nate O'Hara
Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.

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