Apple
AAPL
Inc. is scheduled to report earnings after Thursday’s close. The stock hit a record high near $198.23/share in 2023 and is currently trading near $173/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 a gain of $1.39/share on $84.69 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.45/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings are expected to grow to $6.55 in 2024 which is 8% higher than the $6.07 it is expected to earn in 2023. The company’s price to earnings (p/e) ratio is 29 which is higher than the S&P 500.
A Closer Look At The Technicals
Technically, the stock is acting well on a relative basis because it recovered from its 2022 decline and it just hit a new all-time high in 2023. However, in recent months the stock has been pulling back and is currently 12% below its 52-week high. The bulls want to see it gap up after earnings and the bears want to see it gap down.
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.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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