Apple stock price in search of next big thing ahead of Q2 results

Having drifted sideways for eight months, Apple’s stock is in sore need of a catalyst to drive it higher. Can upcoming results provide this?

When does Apple report earnings?

Apple’s second fiscal quarter (Q2) earnings are published on 28 April, after market close.

Apple earnings – what does Wall Street expect?

Apple is expected to report adjusted earnings per share (EPS) of 99.1 cents, up 55% year-on-year (YoY), while revenues are forecast to rise 32.6% to $77.4 billion. Apple has beaten on both these metrics in all eight of the last quarterly results.

It will be a busy week for Apple, with earnings swiftly followed by new product releases on Friday. It looks to have been a great quarter for hardware as growth in device sales outpaces that of services, returning Apple to its winning ways as a device seller to consumers of all types. But like many tech firms, it is struggling to find a big catalyst to enthuse shareholders as in the old days. An increase in the dividend or a return to guidance might do the trick, helping to rescue a somewhat moribund stock price.

How to trade Apple’s earnings

32 analysts currently rate Apple as a ‘buy’, with nine ‘holds’ and just three ‘sells’, while the median target price is $151.19 versus a current $134.46 (as of 26 April). While the average move on results day is 4.06%, current options pricing points towards a move of 3.7%.

Apple stock price – technical analysis

Aside from the spike in January, Apple stock has gone nowhere since the beginning of September 2020. However, there has been a general trend of higher lows in that time - in November and March - indicating willingness to buy on weakness. Gains of late have stalled below $135, with a lack of momentum to drive the price on to $140 and then $145. This consolidation will likely resolve in the direction of the longer-term uptrend, although a break below $121 would be considered a bearish development in the short term.

Apple searches for the spark to reignite rally

It is an odd thing to see Apple lag behind even as indices sit at all-time highs (and it is important not to exaggerate – the stock is only 7% below its peak from January). But big tech names have struggled to justify their valuations of late, and Apple is no different. It is to be hoped that this quarter’s earnings will provide the spark, although that is far from certain.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.