Apple (AAPL) Dips More Than Broader Market: What You Should Know

In the latest trading session, Apple (AAPL) closed at $214.10, marking a -0.53% move from the previous day. This decline was greater than the loss seen in the broader market, as the S&P 500 dropped by 0.22%. Meanwhile, the Dow Jones experienced a minimal loss of 0.03%, and the Nasdaq, known for its tech-heavy listings, fell by 0.33%.

Over the past month, Apple's stock has experienced a noteworthy downturn of 12.1%, underperforming the Computer and Technology sector, which has seen a 12% decline, alongside the S&P 500's loss of 7.48% in the same timeframe.

As investors approach the company's upcoming earnings report, there is significant anticipation surrounding Apple's financial performance. Analysts predict an earnings per share (EPS) of $1.61, reflecting a 5.23% increase from the same quarter last year. Additionally, revenue estimates stand at approximately $93.67 billion, which signals a 3.22% growth compared to the previous year.

Looking at the annual expectations, the Zacks Consensus Estimates forecast that Apple will achieve earnings of $7.26 per share and revenue totaling $406.43 billion, suggesting increases of +7.56% and +3.94%, respectively, in comparison to last year's figures.

Investors are also encouraged to monitor any recent shifts in analyst estimates for Apple, as these changes often indicate evolving business trends. Positive revisions can be a sign of analysts' confidence in the company's performance and profitability potential.

Research has shown that these estimate revisions are often closely linked to immediate share price movements. To help investors take advantage of this, Zacks has developed the Zacks Rank, which is a unique system that considers these estimate changes and provides a practical rating scale.

The Zacks Rank is categorized from #1 (Strong Buy) to #5 (Strong Sell). This model has a notable track record, with #1 ranked stocks averaging an annual return of +25% since 1988. In recent weeks, the Zacks Consensus EPS estimate for Apple has decreased by 0.23%, currently giving Apple a Zacks Rank of #3 (Hold).

From a valuation standpoint, Apple is currently evaluated at a Forward P/E ratio of 29.63, which is a premium when compared to the industry average of 11.97.

Moreover, Apple's PEG ratio is 2.14, which is similar to the P/E ratio but also accounts for anticipated earnings growth. In comparison, as of now, the Computer - Micro Computers industry holds an average PEG ratio of 1.5.

This industry is part of the broader Computer and Technology sector, which has achieved a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.

The Zacks Industry Rank evaluates the health of specific industry groups by calculating the average Zacks Rank of individual stocks within those groups. Historical data indicates that the top-rated industries tend to outperform the lower-rated ones significantly.

For those interested in tracking Apple's progress in the upcoming trading sessions, staying updated through reliable financial news resources is recommended.

Apple, Stocks, Market