Cupertino, California headquartered Apple (NASDAQ:AAPL) is preparing to announce its fiscal second-quarter financial results this Thursday, April 28. It’s bound to be a headline grabber, and investors should consider adding to their AAPL stock positions prior to the earnings event.
Since the Nasdaq started to correct in November of last year, sentiment has soured and many investors have divested their tech stocks. However, among the technology-focused FAANG stocks, Apple has held up fairly well.
AAPL stock has chopped around and basically gone sideways since late 2021. Still, some investors are skittish due to concerns about supply chains. They may also be worried because the Federal Reserve is likely to raise interest rates soon.
Yet, an earnings beat on Thursday should remind people that Apple is a robust and resilient business. An earnings beat is a definite possibility during a time of worry and negative sentiment toward tech names.
Moreover, a beat is likely because Wall Street’s expectations aren’t very high. Specifically, analysts polled by FactSet anticipate that Apple will post $94.1 billion in revenue, as well as earnings per share of $1.43. Those are modest numbers, as they would translate to just 5% year-over-year revenue growth and 2% earnings growth.
Despite the muted expectations, some analysts have high hopes for Apple. For example, Bank of America (NYSE:BAC) Securities analyst Wamsi Mohan has issued a $215 price target on Apple shares. Mohan cited positive catalysts such as “the opportunity to better monetize [Apple’s] installed base, advertising-related revenue growth, opportunity in augmented/virtual reality and long-term growth in services.”
Meanwhile, Deutsche Bank (NYSE:DB) analyst Sidney Ho emphasized Apple’s appeal to safety-minded investors. “We believe AAPL stock is a good hiding place in this volatile market,” Ho assured. The Deutsche Bank analyst assigned a price target of $210 on Apple shares.
Both Mohan and Ho issued “buy” ratings on Apple. Also, notice that their price targets are higher than the current Apple share price.
There’s just no denying that this is a company with staying power even in challenging circumstances. Therefore, investors can choose to hold at least a few shares of AAPL stock in anticipation of a strong set of earnings results.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
