Apple Is Ready To Announce Its Earning, Will You Buy

It is difficult to pinpoint a certain stock when you read the headlines which says that record highs are made and only last week, the NASDAQ index crossed its tech bubble highs and made another record high. Now, there are questions if we are in a bubble again, and if the companies can produce same earnings as they have done in the past especially, that the dollar strength is so much in question. Therefore, you have to be wise in choosing your investment, your sector and more precisely your stocks. In times like these, only a company with brawny growth and resilience to the strength of the dollar can perform well. One stock which we believe still has a potential is Apple (NASDAQ:AAPL).

On Monday, Apple will announce its earning and it will be the market moving news. Apple’s weigh in NASDAQ is nearly over 23%, which is a massive share and this reflects that if Apple sneeze, the entire index will get sick. We believe Chinese demand is going to have a significant impact on their number which could be anchored towards its peak. Our model predicts that the company could have sold nearly 58 million iPhones which is well above the street estimate of 55 million. Thanks to its iPhone 6 and iPhone 6 plus. Apple watch has been a massive success for the company and it also could have a paramount impact in the coming quarters.

There are a number of reasons that we will like Apple, but here some of them. Firstly, it is the largest share buyback program which it triggered in 2012 and under this program they have returned nearly over 100 billion dollars to their shareholders. Their ambitious plan is to increase this number to 130 billion dollars by this year end. This is unparalleled affair, not many companies can promise such a stellar reward. Secondly, if you are an investor who likes a steady income, Apple fits the bill for you, as they have also inflated their dividend by 15% and 8% last and this year, respectively. So, overall in two years, that is an increase of 23% in an environment when dollar strength is the major problem for other companies.

Thirdly, the CEO of the company has changed his policy now and has become more investor friendly and has publicly announced that too much cash is parked on their balance sheet which they do not need it, therefore, he wants to distribute that amount back to shareholders, which is music to the shareholder’s ears.

Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam