**Apple Inc. (AAPL) shares are currently viewed as overvalued, with a Value Score of D and a forward P/E ratio of 29.63, surpassing the sector average of 24.72.** Over the past six months, AAPL shares have risen by 10.2%, significantly outpacing peers like HP, Microsoft, and Amazon, which saw declines of 33.5%, 21.4%, and 8.1%, respectively. In Q1 FY 2026, Apple reported record revenues in its Services segment, driven by a growing base of over 2.5 billion devices and double-digit growth in paid subscriptions.
Apple’s competitive position is under pressure, particularly in the PC domain where it holds a 9.4% market share against rivals like Lenovo (27.2%) and HP (21.5%). Worldwide PC shipments increased by 9.1% in 2025, totaling over 270 million units. Notably, Apple’s AI initiatives, including a collaboration with Google to enhance its Apple Intelligence features, are expected to improve its services and performance despite current valuation concerns.
The Zacks Consensus Estimate for Apple’s fiscal 2026 earnings remains at $8.41 per share, reflecting a 12.7% growth from FY 2025, while revenue is projected to reach $461.19 billion, up 10.8% year-over-year.
