U.S. equities are rebounding nicely on Friday after harrowing declines earlier in the week as reports of solid iPhone 11 demand — requiring an increase in production from suppliers — are erasing away fears over U.S. industrial activity. The major U.S. equity averages are climbing higher in response and turning the mood around on Wall Street.
The catalyst came from Apple (NASDAQ:AAPL) analyst Dan Ives from Wedbush, who in a report today indicates the company’s supply chain partners are increasing their production schedules and forecasts on stronger-than-expected demand for the new iPhone 11 and iPhone 11 Pro. Ives was previously looking for between 75 and 80 million unit sales of all the various models (iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max) this year. Now, he expects the 80 million mark will be surpassed.
As a result, a number of supplier stocks are blasting higher. Here are four worth a look:
Despite Apple’s recent settlement with Qualcomm (NASDAQ:QCOM), a tear down of the iPhone 11 confirmed that the company is using Intel (NASDAQ:INTC) parts. As a reminder, the company recently agreed to sell its model business to Apple for $1 billion, a deal that will bring 2,200 Intel employees into the Apple fold.
The company will next report results on Oct. 24 after the close. Analysts are looking for earnings of $1.24 per share on revenues of $18 billion.
Analog Devices (ADI)
Analog Devices (NASDAQ:ADI) shares are once again crossing up and over its 50-day moving average. And ADI stock looks ready to challenge the prior high set in late July. The company provides touchscreen controllers used in the iPhone and Apple Watch among other devices.
The company will next report results on Nov. 20 before the bell. Analysts are looking for earnings of $1.22 per share on revenues of $1.5 billion.
Cirrus Logic (CRUS)
Shares of Cirrcus Logic (NASDAQ:CRUS) are also moving back up and over their 50-day moving average thanks to the company’s dominant role as a supplier of audio amplifier chips to Apple across its iPhone models. The company is also benefiting from the haptic feedback feature of the Apple Watch Series 4 and 5.
The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of 77 cents per share on revenues of $320 million.
Texas Instruments (TXN)
Texas Instruments (NASDAQ:TXN) shares are enjoying a steady and persistent rise along their 50-day moving average. TXN stock is continuing to break out of a pattern going back to early 2018. The company has been a frequent provider of iPhone components and will no doubt benefit from the increased output. Shares were recently upgraded by analysts at Bank of America Merrill Lynch.
The company will next report results on Oct. 22 after the close. Analysts are looking for earnings of $1.44 per share on revenues of $3.8 billion.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.