Q2 STOCKS TO BUY

Bull Notes Push AAPL to Record Highs Ahead of Earnings

The equity is already up more than 74% year-over-year

Digital Content Manager
Jan 25, 2021 at 11:10 AM
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The shares of Apple Inc (NASDAQ:AAPL) are trading at record levels this morning, up 3.9% at $144.49 at last check, after the tech giant earned a price-target hike from Wedbush to a Street-high $175 from $160. The analyst in coverage expects to see "eye-popping" iPhone 12 unit results after the close on Wednesday, Jan. 27, when the equity reports first-quarter earnings. At least two other analysts followed in Wedbush's footsteps, including Raymond James, which raised the security's price target to $150 from $140 ahead of the event.

On the charts, Apple stock is once again surging after a brief pullback from its September peak. Today's pop has helped shares overcome overhead pressure at the $140 level, with the security now on track for its fifth-straight win. The 40-day moving average has been a consistent source of support over the last couple of months, containing at least one of the equity's pullbacks. Longer term, AAPL sports an impressive 80.6% year-over-year lead. 

Analysts were already optimistic towards the security coming into today. Of the 24 in coverage, 19 carried "buy" or better ratings, while five said "hold." Meanwhile, the 12-month consensus target price of $136.09 is a 5.2% discount to current levels, suggesting more price-target hikes could be on the horizon. 

The options pits are firmly in the bullish camp as well. This is per the security's 50-day call/put volume ratio of 3.29 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all readings from the past year. This means calls are being picked up at a faster-than-usual clip.  

Lastly, Apple stock's Schaeffer's Volatility Scorecard (SVS) sits at a high 91 out of 100. In simpler terms, the equity has tended to exceed option trader's volatility expectations over the past year -- a boon for option buyers.

 
 

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