Apple's Stock Declines Ahead of Earnings Announcement

Apple (AAPL) faces challenges, ending trading at $214.10 with a 0.53% decline. Upcoming earnings reveal potential EPS growth of 5.23% despite a negative trend in stock performance over the past month.

Date: 21-03-2025

AI Rating: 5

Performance Overview: Apple (AAPL) has shown a downward trend, ending the recent trading session at $214.10, reflecting a -0.53% change. This decline is worse than the S&P 500's loss of 0.22% and the tech-heavy Nasdaq's 0.33% drop.

Over the past month, AAPL has fallen by 12.1%, underperforming the Computer and Technology sector, which lost 12%, and the S&P 500, which decreased by 7.48%. This trend raises concerns for investors as it indicates potential challenges for the company.

Expectations on Earnings: Investors are keenly awaiting the upcoming earnings disclosure from Apple. The forecasted earnings per share (EPS) is $1.61, representing a significant growth of 5.23% compared to the same quarter last year. Additionally, the expected revenue of $93.67 billion indicates a 3.22% increase year-over-year.

For the entire year, the Zacks Consensus Estimates suggest earnings of $7.26 per share and revenue of $406.43 billion, marking changes of +7.56% and +3.94%, respectively.

Analyst Revisions: It's crucial to monitor any recent changes in analyst estimates for Apple, as these alterations can indicate shifts in near-term business performance. Positive revisions typically signify growing confidence in the company's profit potential.

Zacks Rank: Apple currently holds a Zacks Rank of #3 (Hold), having seen a 0.23% downward adjustment in the EPS estimate over the past 30 days. This rank suggests a neutral outlook based on analyst sentiment.

Valuation Insights: Apple is trading at a Forward P/E ratio of 29.63, considerably higher than the industry average of 11.97. Moreover, the PEG ratio stands at 2.14, showcasing a premium valuation amidst industry comparisons.

Stocks: AAPL