Apple (AAPL - Free Report) has finally become the first U.S. trillion-dollar company, hitting the market cap to that level. The rally was driven by its robust third-quarter fiscal 2018 results wherein the technology giant topped the earnings and revenue estimates, and projected an upbeat revenue outlook. In fact, the stock jumped about 9% since its earnings, representing its best two-day run since April 2014.

Quick Insights to Earnings

Earnings per share came in at $2.34, beating the Zacks Consensus Estimate by 17 cents and improving 40% from year-ago earnings. Revenues grew 17% year over year to $53.3 billion and edged past the estimate of $52.37 billion. This represents the fourth consecutive quarter of double-digit revenue growth.

The impressive results were driven primarily by a 20% increase in iPhone revenues and a 31% increase in revenues from the service unit, which includes App Store, AppleCare, Apple Pay, iTunes and cloud services. Notably, Apple Watch delivered a record quarterly performance, with growth in the mid 40% range and continued to hold the lead in the wearables market.

Apple sold 41.3 million iPhones in fiscal third quarter, up from 41.03 million units in the year-ago quarter but below the Wall Street estimate of 41.79 million units. Apple fetched an average price of $724 per iPhone, up 20% from an average of $606 per iPhone during the same time last year. Revenues of other products, such as Apple TV, Watch and AirPods, increased 37% while iPad and Mac revenues dropped 5% each.

The gadget-maker foresees revenues in the range of $60-$62 billion for the fourth quarter of fiscal 2018. This was much above the Zacks Consensus Estimate of $58.66 billion pegged at the time of earnings release.

The Journey to Trillion

The journey of the iPhone maker from a niche player in personal computers to a global powerhouse spanning entertainment and communications has been interesting and remarkable. The achievement was seemed unpredictable in 1997 when Apple was on the verge of bankruptcy, with its stock trading for less than $1, on a split-adjusted basis, and its market value dropped to below $2 billion. If someone had dared to buy $10,000 worth of the stock at that point of desperation, the investment would now be worth about $2.6 million.

Apple has surged more than 50,000% since its 1980 initial public offering, dwarfing the S&P 500's 2,000% increase during the same almost four decades. With the latest milestone, the stock now accounts for 4% of the S&P 500.

Solid Fundamentals

Apple has seen rising earnings estimate revisions from $11.41 to $11.66 per share for the full fiscal year over the past seven days. This represents substantial year-over-year growth of 26.60%. Revenues are expected to grow 14.89%. 

The stock is currently trading at a PEG ratio of 1.59, much lower than the industry average of 1.76, suggesting that it is a better value stock in the industry. The lower the PEG ratio, the better the value as investors would be paying less for each unit of earnings growth. Additionally, Apple is cheap with P/E ratio of 17.28 compared with the other FAANG names — Facebook’s (FB - Free Report) 24.25 times, Alphabet’s (GOOGL - Free Report) 30.90 times, Amazon’s (AMZN - Free Report) 104.08 times, and Netflix’s (NFLX - Free Report) 125.40 times.

Further, Apple currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. It boasts a top-ranked Zacks industry (top 25%) at the time of writing, suggesting strong upside for the stock over the coming days.

ETFs to Tap

Given this, investors seeking to tap the bullishness in the tech titan could consider the following ETFs. These funds have Apple as their top firm with a double-digit allocation.

iShares Dow Jones US Technology ETF (IYW - Free Report)

This ETF provides investors exposure to the broad technology stocks, with 17.02% allocation in Apple. The fund has AUM of $4.2 billion and charges 44 bps in fees and expenses. It has a Zacks Rank #2 with a Medium risk outlook.

Vanguard Information Technology ETF (VGT - Free Report)

This fund also targets the broad tech sector with 15.4% allocation in Apple. It has amassed $21.6 billion in its asset base, while charges 10 bps in annual fees. VGT has a Zacks Rank #1 (Strong Buy) with a Medium risk outlook.

Select Sector SPDR Technology ETF (XLK - Free Report)

This most-popular technology ETF has $22.7 billion in AUM and charges 13 bps in fees per year from investors. AAPL makes up for roughly 15.2% of assets. It has a Zacks Rank #2 with a Medium risk outlook.

MSCI Information Technology Index ETF (FTEC - Free Report)

With AUM of $2.2 billion, the product allocates 14.3% in Apple. The ETF has 0.08% in expense ratio and a Zacks Rank #1 with a Medium risk outlook.

iShares Morningstar Large-Cap ETF (JKD - Free Report)

With AUM of $972.3 million, this product provides exposure to the large, established U.S. companies with Apple making up for 13.5% of assets. It charges 20 bps in fees per year and has a Zacks Rank #3 (Hold) with a Medium risk outlook.

iShares Global Tech ETF (IXN - Free Report)

This ETF provides global exposure to electronics, computer software and hardware, and informational technology companies, with Apple making up for 12.6% share in the basket. It has $2.4 billion in AUM and charges 47 bps in fees per year.

Invesco QQQ (QQQ - Free Report)

This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization, with Apple accounting for 11.8% share in the basket. It has $67.1 billion in AUM and charges 20 bps in fees per year. The fund has a Zacks Rank #1 with a Medium risk outlook.