Apple's stock closed higher than the S&P 500, but analyst estimates for earnings are lower.

From Nasdaq:

In the latest trading session, Apple (AAPL) closed at $178.66, up 1.46% from the previous day, outpacing the S&P 500, which gained 0.89%. Over the past month, AAPL’s shares dropped 3.02%, compared to the Computer and Technology sector’s 3.77% gain and the S&P 500’s 3.56% increase.

Investors eagerly await Apple’s upcoming earnings report, with consensus estimates projecting an EPS of $1.50, a 1.32% decrease from the previous year. Revenue estimates stand at $90.38 billion, a 4.7% decline from the year-ago period. For the year, earnings are estimated at $6.55 per share and revenue at $385.52 billion, up 6.85% and 0.58% respectively.

Analyst estimate revisions highlight short-term business trends and optimism about Apple’s outlook. Utilizing the Zacks Rank, investors can benefit from these estimates, with #1 (Strong Buy) ranked stocks historically yielding an average return of +25% annually. Apple is currently ranked #3 (Hold) on the Zacks Rank system.

In terms of valuation, Apple’s Forward P/E ratio is 26.89, higher than the industry’s average of 14.67. AAPL’s PEG ratio sits at 2.12, compared to the industry’s average of 2.5. The Computer – Mini computers industry, part of the Computer and Technology sector, ranks in the bottom 17% of all industries, as per Zacks Industry Rank.

Zacks has identified a top semiconductor stock poised for growth in the rapidly expanding industry of Artificial Intelligence, Machine Learning, and Internet of Things. With projected growth from $452 billion in 2021 to $803 billion by 2028, this stock is positioned to capitalize on the trend.



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