Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Apple, Boeing, Caterpillar and Nvidia

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 3, 2019 – 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 (AAPL - Free Report) , Boeing (BA - Free Report) , Caterpillar (CAT - Free Report) and Nvidia (NVDA - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Apple (AAPL - Free Report) Faces Trade War Impact on Two Fronts

Apple has been facing a vast amount of problems because of the ongoing trade war between the U.S and China. But the tech giant is not the only corporate giant directly affected by the trade dispute: Boeing, Caterpillar and Nvidia have also been negatively impacted.

The lingering back and forth banter between the countries have caused turmoil in the broader stock market, especially this week after a warning was publicized in the Chinese newspaper People’s Daily targeting the U.S; this warning caused several stocks to fall. Stocks that depend on China for resources that they use to manufacture their products, as well as companies who rely on product sales from China, have felt the weight of the trade war the most.

How the Trade War is Affecting Apple

The impacts of the ongoing trade tensions on Apple are two-fold, making the outcome of the dispute crucial for the company’s valuation. 

China represents 18% of Apple’s sales, and the company also holds 12 percent unit share in the country. These numbers have plummeted as the rhetoric surrounding the trade war continues to heat up. If trade talks take a turn for the worse, China could switch their preferences to more China national brands. This would hurt the iPhone maker significantly, as China is its third largest market.

Additionally, Apple products have become less desirable in China as the trade war wears on. The slowdown in demand for Apple products have caused analysts to predict that the company’s sales could be cut in half in the country, a bearish sentiment that has led to a decline in its stock price—shares are down almost 12% just this past month—and a hit to its valuation.

Not only could Apple’s sales be hurt by further trade war escalation, but the company also faces manufacturing repercussions. China’s recent threat to the U.S to cut off the supply of rare earth minerals furthers the speculation surrounding the company. These rare earth minerals are made up of elements that are mined from the earth’s crust, and are commonly used in car motors, technology, and weapon systems that the U.S relies on for national security. Around 35% of the rare earth reserves are in China, making them a mining tycoon; China produced 70% of the total rare earth minerals in the world in 2018. Apple uses materials made from these rare earth minerals to manufacture their products, making this threat from China detrimental to the company.

Bottom Line

While many other companies will also likely be negatively impacted by the trade war, Apple mostly faces repercussions on the manufacturing and sales front. With no light being detected at the end of the tunnel, Apple’s stock value seems to remain shaky during these times. Apple will be holding its worldwide developer conference on June 3rd where it will reveal its future products and plans for further development. This conference will be something shareholders will be diligently paying attention to. Apple is currently a Zacks Rank #3 (Hold).

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

http://www.zacks.com                                                 

 

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/performance for information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Boeing Company (BA) - free report >>

Apple Inc. (AAPL) - free report >>

Caterpillar Inc. (CAT) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Published in