Apple Set To Beat Q1 Earnings Estimates: Tech ETFs To Buy

Technology giant Apple (AAPL - Free Report) is set to release first-quarter fiscal 2020 results on Jan 28 after market close. Since Apple accounts for more than 19% of total market capitalization of the entire technology sector in the S&P 500 Index, it is worth taking a look at its fundamentals ahead of its quarterly results.

Apple has been hitting record highs lately. It has returned about 28% over the past three months, on par with the industry’s gain. The momentum is expected to continue if the company beats estimates in the soon-to-be reported quarter.

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Inside Our Methodology

Apple has a Zacks Rank #2 (Buy) and an Earnings ESP of +4.08%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Apple saw positive earnings estimate revision of a couple of cents over the past 30 days for the fiscal first quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator for the stock. Additionally, the company has a strong track record of positive earnings surprise. It delivered an average positive earnings surprise of 3.64% in the trailing four quarters.

Further, the Zacks Consensus Estimate indicates a modest year-over-year increase of 8.37% for earnings and 4.07% for revenues.

Apple Inc. Price, Consensus and EPS Surprise

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Apple Inc. Price, Consensus and EPS Surprise

Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote


Though AAPL has a solid Momentum Score of B, it has Value and Growth Score of D and C, respectively. The stock belongs to a top-ranked Zacks Industry (top 44%). According to the analysts polled by Zacks, more than 65% of the analysts provided a Strong Buy or a Buy rating for Apple ahead of its earnings with a price target of $302.19.  

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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