• Shane Zimmer

$APPL is a Strong Buy Ahead of Earnings Report

What's the first thing you realize when you text someone? Whether or not they have an iPhone based upon their blue or green texts. Apple was a company made for the common man to be able to use, and afford, a luxury computer, and now it is seen as a social status item. Regardless of what consumers' opinion is on big tech, everyone knows Apple. The company has a current valuation of 2.34 trillion, and will certainly climb from here. Analysts and talking heads within the media are calling this recent tech pump a “bubble” but for Apple I see otherwise.

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The big tech giant has the highest market cap of any publicly traded company in the US, and number one in the world, and will continue to rise. Yet, why is their stock price so much lower than other giants within the tech sphere? The stock has seen many splits within the last decade, to make the stock more affordable, while also increasing the amount of outstanding shares available in the market. It is perhaps the only stock that is always given a “Buy” rating regardless of the current market price, and should not be traded at all but simply owned.

$APPL reports on wednesday, and what are analysts expectations of their quarterly numbers? The stock is currently trading at 142.82 intraday, and it doesn't seem as though a big earnings report is priced in yet, which would make this an opportune time to jump into the tech giant prior to an earnings pump. Apple reports on wednesday, and analysts are predicting an EPS, earnings per share of 1.41, on average, 1.23, on the low end, and finally 1.57 on the high end. They have an average quarterly revenue estimate of 103.01 billion, with a low of 97 billion, and a high of 110.2 billion. The company reported earnings which best estimates last year consistently amid the pandemic, and are primed to do so again. The growth estimates for Apple are as follows: 12.80% for the current quarter, 40.60% for the next quarter, 22.60% for the current year, and 12.92% for the next five years. Within the last 11 years, the company’s annual EPS has grown from 0.54 in 2010 to 3.28 in 2020.