Apple and Alphabet tend to outperform in the third quarter
Big Tech stocks have had a stranglehold on the stock market so far in 2024, and this summer could be no different. Two stocks in particular, Apple Inc (NASDAQ:AAPL) and Alphabet Inc Class A (NASDAQ:GOOGL), are poised to extend their ascents.
Per Schaeffer's Senior Quantitative Analyst Rocky White, AAPL and GOOGL made the list of 25 best-performing S&P 500 Index (SPX) stocks to own this quarter, historically, in the past 10 years. Apple boasts an average quarterly return of 7.6%, with an 80% win rate, while the Google parent is higher 6.8% of the time and has finished the quarter higher nine times in the last decade.
Apple stock was last seen trading at $219.55, just below yesterday's record close of $220.38. The shares are 14.3% higher so far in 2024, with support stepping up at their 20-day moving average before a 6% post-earnings bull gap in early May. On the chart below, note the bullish flag pattern that preceded yesterday's 1.6% gain.
GOOGL is trading at $185.24 at last check, a chip shot from its June 27 record high of $186.05. Compared to AAPL, Alphabet shares are up a much more robust 32.1% this year, and also sport a 53.57% year-over-year lead amid a channel of higher highs.
Both equities sport attractively priced premiums at the moment, per their respective Schaeffer's Volatility Indexes (SVI) that sit in the bottom 25th percentile of their annual ranges. Where they differ is that AAPL's Schaeffer's Volatility Scorecard (SVS) sits at 79 out of 100, suggesting the security has tended to exceed options traders' volatility expectations during the past year. GOOGL's SVS, meanwhile, sits at 7, making the equity an intriguing premium-selling candidate.