What To Expect From Apple Today

Apple Inc.

AAPL
is scheduled to report earnings after Thursday’s close. The stock just hit a record high of $157.26/share in 2021 and is currently trading near $153/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report earnings of $1.24/share on $84.79 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.35/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

Apple continues to impress just about everyone out there on both Main Street and Wall Street. The company continues to post very strong earnings and sales growth even with it being one of the largest companies in the world!

A Closer Look At The Technicals:

Technically, the stock is acting very well and continues forming the right side of a new bullish base (a.k.a. digestion area). The fact that the stock remains very strong illustrates how strong the bulls are right now.

I spoke with David Keller, Chief Market Strategist at StockCharts.com, and he told me, “While a number of the FAANG names have broken to new all-time highs recently, Apple remains rangebound between its September high around $157 and the October low at $138. Earnings often provide the necessary catalyst to propel a stock out of a trading range, so a break above resistance at $157 would indicate an influx of new buying power and be quite bullish. On the other hand, if we see drop below $138 this would indicate excessive selling pressure and indicate a bearish bias for Apple through year end. Given the strength of the mega cap technology and communications stocks, it seems that the path of least resistance for Apple remains higher. If and when AAPL can push above that key resistance level of $157, that would suggest a strong likelihood of higher highs through year-end 2021 with an upside target around $176.” David makes a great point about being flexible in your approach and to always let the market guide you.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.