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The Zacks Analyst Blog Highlights: Apple, iShares Dow Jones US, Select Sector SPDR Technology, Vanguard Information Technology and iShares Edge MSCI Multifactor Technology
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For Immediate Release
Chicago, IL – November 6, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple Inc. (AAPL - Free Report) , iShares Dow Jones US Technology ETF (IYW - Free Report) , Select Sector SPDR Technology ETF (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) and iShares Edge MSCI Multifactor Technology ETF .
Here are highlights from Friday’s Analyst Blog:
Take a Bite of Apple’s Blowout Quarter with These ETFs
Technology giant Apple Inc. encouraged investors with blowout fourth-quarter fiscal 2017 results, after the closing bell yesterday. The company surpassed our earnings and revenue estimates, and offered an upbeat outlook for the holiday quarter.
Additionally, Apple expects the holiday season to result in the biggest quarter ever, eroding all concerns over manufacturing delays for iPhone X, Apple's 10th anniversary phone. This has propelled AAPL shares higher as much as 4% in after-hours trading to fresh highs resulting in a valuation of over $900 billion. With this, the iPhone maker has come closer to become the world’s first trillion-dollar company (read: Will Tech ETFs Hit New Highs Post Facebook, Apple Earnings?).
Apple Q4 Results in Focus
Earnings per share came in at $2.07, beating the Zacks Consensus Estimate by 20 cents and improving from the year-ago earnings of $1.87. Revenues grew 12.2% year over year to a record $52.58 billion and edged past our estimate of $51.17 billion. Revenues grew for the fourth consecutive quarter and witnessed the biggest increase in two years.
Stronger-than-expected iPhone sales, strong revenues from the service unit, which includes AppleCare, Apple Pay and Apple Music, as well as resurgent iPad and Mac sales were attributed to the robust performance.
Apple sold 46.7 million iPhones in the fiscal fourth quarter, up 3% year over year and above the Wall Street estimate of 46 million units. This has resulted in total revenues of $28.85 billion, representing a 2% increase from the year-ago quarter. Meanwhile, service revenues grew 34% to $8.5 billion (read: Tap Q3 Growth with Revenue-Weighted ETFs).
iPad and Mac sales increased 14% and 25%, respectively, while other products, such as Apple TV, Watch and AirPods, surged 36%. Further, Apple returned to revenue growth in China after six straight quarters of sales decline. Revenues in China increased 12% year over year to $9.8 billion.
The ubiquitous gadget-maker foresees revenues in the range of $84-$87 billion for the first quarter of fiscal 2018. This is much above the current Zacks Consensus Estimate of $83.31 billion.
Apple currently has a Zacks Rank #3 (Hold) and belongs to a solid Zacks Industry Rank in the top 9%, suggesting significant upside for the stock over the coming days. Further, Apple flaunts a solid Value Style Score of B.
ETFs in Focus
Given this, investors seeking to tap the bullishness in the tech titan could consider the following ETFs. These funds have Apple as their top firm with a double-digit allocation and a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy) (see: all the Technology ETFs here):
iShares Dow Jones US Technology ETF
This ETF provides investors exposure to technology stocks with 16.8% allocation in Apple. The fund has AUM of $4 billion and charges 44 bps in fees and expenses. It has a Zacks ETF Rank #1 and has gained 35.4% so far this year.
Select Sector SPDR Technology ETF
This most popular technology ETF has $19.2 billion in AUM and charges 14 bps in fees per year from investors. AAPL makes up for roughly 14.9% of assets. It has a Zacks ETF Rank #2 and has added 31.7% in the same time frame (read: Top ETF Stories of October 2017).
Vanguard Information Technology ETF
This fund manages about $16.1 billion in its asset base with 13.8% allocation in Apple. It has 0.10% in expense ratio and has a Zacks ETF Rank #2. VGT is up 35.5% in the same time frame.
iShares Edge MSCI Multifactor Technology ETF
This ETF targets companies that have the potential to outperform the broad U.S. technology sector. Apple accounts for 13.5% of the portfolio. TCHF charges 35 bps in fees per year and has attracted $6 million in its asset base. It has added 33.7% in the same time frame and carries a Zacks ETF Rank #2 (read: 5 Overlooked Tech ETFs Crushing XLK).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Apple, iShares Dow Jones US, Select Sector SPDR Technology, Vanguard Information Technology and iShares Edge MSCI Multifactor Technology
For Immediate Release
Chicago, IL – November 6, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple Inc. (AAPL - Free Report) , iShares Dow Jones US Technology ETF (IYW - Free Report) , Select Sector SPDR Technology ETF (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) and iShares Edge MSCI Multifactor Technology ETF .
Here are highlights from Friday’s Analyst Blog:
Take a Bite of Apple’s Blowout Quarter with These ETFs
Technology giant Apple Inc. encouraged investors with blowout fourth-quarter fiscal 2017 results, after the closing bell yesterday. The company surpassed our earnings and revenue estimates, and offered an upbeat outlook for the holiday quarter.
Additionally, Apple expects the holiday season to result in the biggest quarter ever, eroding all concerns over manufacturing delays for iPhone X, Apple's 10th anniversary phone. This has propelled AAPL shares higher as much as 4% in after-hours trading to fresh highs resulting in a valuation of over $900 billion. With this, the iPhone maker has come closer to become the world’s first trillion-dollar company (read: Will Tech ETFs Hit New Highs Post Facebook, Apple Earnings?).
Apple Q4 Results in Focus
Earnings per share came in at $2.07, beating the Zacks Consensus Estimate by 20 cents and improving from the year-ago earnings of $1.87. Revenues grew 12.2% year over year to a record $52.58 billion and edged past our estimate of $51.17 billion. Revenues grew for the fourth consecutive quarter and witnessed the biggest increase in two years.
Stronger-than-expected iPhone sales, strong revenues from the service unit, which includes AppleCare, Apple Pay and Apple Music, as well as resurgent iPad and Mac sales were attributed to the robust performance.
Apple sold 46.7 million iPhones in the fiscal fourth quarter, up 3% year over year and above the Wall Street estimate of 46 million units. This has resulted in total revenues of $28.85 billion, representing a 2% increase from the year-ago quarter. Meanwhile, service revenues grew 34% to $8.5 billion (read: Tap Q3 Growth with Revenue-Weighted ETFs).
iPad and Mac sales increased 14% and 25%, respectively, while other products, such as Apple TV, Watch and AirPods, surged 36%. Further, Apple returned to revenue growth in China after six straight quarters of sales decline. Revenues in China increased 12% year over year to $9.8 billion.
The ubiquitous gadget-maker foresees revenues in the range of $84-$87 billion for the first quarter of fiscal 2018. This is much above the current Zacks Consensus Estimate of $83.31 billion.
Apple currently has a Zacks Rank #3 (Hold) and belongs to a solid Zacks Industry Rank in the top 9%, suggesting significant upside for the stock over the coming days. Further, Apple flaunts a solid Value Style Score of B.
ETFs in Focus
Given this, investors seeking to tap the bullishness in the tech titan could consider the following ETFs. These funds have Apple as their top firm with a double-digit allocation and a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy) (see: all the Technology ETFs here):
iShares Dow Jones US Technology ETF
This ETF provides investors exposure to technology stocks with 16.8% allocation in Apple. The fund has AUM of $4 billion and charges 44 bps in fees and expenses. It has a Zacks ETF Rank #1 and has gained 35.4% so far this year.
Select Sector SPDR Technology ETF
This most popular technology ETF has $19.2 billion in AUM and charges 14 bps in fees per year from investors. AAPL makes up for roughly 14.9% of assets. It has a Zacks ETF Rank #2 and has added 31.7% in the same time frame (read: Top ETF Stories of October 2017).
Vanguard Information Technology ETF
This fund manages about $16.1 billion in its asset base with 13.8% allocation in Apple. It has 0.10% in expense ratio and has a Zacks ETF Rank #2. VGT is up 35.5% in the same time frame.
iShares Edge MSCI Multifactor Technology ETF
This ETF targets companies that have the potential to outperform the broad U.S. technology sector. Apple accounts for 13.5% of the portfolio. TCHF charges 35 bps in fees per year and has attracted $6 million in its asset base. It has added 33.7% in the same time frame and carries a Zacks ETF Rank #2 (read: 5 Overlooked Tech ETFs Crushing XLK).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.