U.S. equities are moving lower on Monday, off their best levels as investors dump key industrial stocks like General Electric (NYSE:GE) after a number of notable downgrades. Energy continues to push higher, as geopolitical tensions bolster what was already a solid uptrend for crude oil.
But looking beyond all this and other near-term concerns — such as the U.S.-China trade machinations and Federal Reserve policy changes — we are mere months away from the unveiling of an all-new iPhone by Apple (NASDAQ:AAPL). After last year’s tepid lineup (a larger iPhone X design and LCD-screened cheaper options) the pressure is on the folks in Cupertino to deliver something closer to the hype that surrounded the iPhone 6 (a larger screen!) and the iPhone X (a larger screen!).
The latest rumors are that the next handset will feature a first-ever triple-camera setup for the handset maker, enabling a wider zoom range and a larger field of view. This, along with other features like bi-directional charging, should generate a nice pop in demand and see off the threat of folding handsets from Samsung and others.
As a result, Apple and a number of supplier stocks are moving higher. Here are five to watch:
Click to Enlarge Apple shares poised to push up and over the $200-a-share level for the first time since November, powering away from its 200-day moving average and marking a 40%-plus rally off of its early January low. Morgan Stanley analyst Katy Huberty took to CNBC this morning to warn investors not to underestimate the company’s push into healthcare given its already dominant 60% revenue market share in wearables and growing focus on biometrics.
The company will next report results on April 30 after the close. Analysts are looking for earnings of $2.37 per share on revenues of $57.5 billion. When the company last reported on Jan. 29, earnings of $4.18 beat estimates by a penny on a 4.5% drop in revenues.
Click to Enlarge Skyworks (NASDAQ:SWKS) shares are pushing up and out of a three-month consolidation range, returning to levels not seen since early November and breaking above the prior high set in February.
Cascend Research analysts recently highlighted evidence of a recovery in Chinese smartphone demand, which they view as a positive for sales of the company’s phone components.
The company will next report results on May 2 after the close. Analysts are looking for earnings of $1.43 per share on revenues of $809.5 million.
When the company last reported on Feb. 5, earnings of $1.83 matched estimates on a 7.6% decline in revenues.
Click to Enlarge Qorvo (NASDAQ:QRVO) shares are also pushing up and over their 200-day moving average to return to levels seen in early November. Shares were recently upgraded to buy by analysts at KeyBanc Capital Markets with an $85 price target. This follows an upgrade in late March by Goldman Sachs citing stabilization in the smartphone marketplace.
The company will next report results on May 1 after the close. Analysts are looking for earnings of $1.06 per share on revenues of $670.6 million. When the company last reported on Feb. 7, earnings of $1.85 beat estimates by 16 cents on a 1.6% drop in revenues.
Cirrus Logic (CRUS)
Click to Enlarge Cirrus Logic (NASDAQ:CRUS) shares are moving up to challenge its early November highs, setting up a breakout from a two-year consolidation range that followed a 50%+ decline from the highs set in the summer of 2017.
This comes as shares shrug off a downgrade from Craig Hallum analysts back in January, citing disappointing demand in the 2018 iPhone lineup.
The company will next report results on May 1 after the close. Analysts are looking for earnings of 12 cents per share on revenues of $219.7 million.
When the company last reported on Jan. 30, earnings of 91 cents per share beat estimates by 13 cents on a 32.8% drop in revenues.
Click to Enlarge Broadcom (NASDAQ:AVGO) shares are going from strength to strength, consolidating their recent push above the $300-a-share threshold after spending three years mired in the mid-$200 range.
Bank of America Merrill Lynch analyst Vivek Arya recently examined semiconductor industry tends over the last 30 years and concluded investors could be overlooking a high-quality sector that is twice as profitable as the broad market.
The company will next report results on June 6 after the close. Analysts are looking for earnings of $5.18 per share on revenues of $5.7 billion. When the company last reported on March 14, earnings of $5.55 beat estimates by 32 cents on an 8.6% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.