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Technology giant Apple (AAPL - Free Report) is set to release second-quarter fiscal 2025 results after market close on May 1.
Apple has plunged about 16% so far this year, underperforming the industry’s decline of 5.8%. Most notably, the stock tumbled more than 25% around the President’s “Liberation Day” tariff announcement. But shares rebounded 15% about a week later, buoyed by signs of a potential easing in smartphone-related tariff policies.
The trend might reverse if the online behemoth beats estimates in its quarterly report. It saw positive earnings revision activity, which is generally a precursor to an earnings beat (see: all the Technology ETFs here).
ETFs having the largest allocation to the tech titan are in focus now. Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and Technology Select Sector SPDR Fund (XLK - Free Report) have Apple as the top firm with a double-digit allocation. These ETFs have a Zacks ETF Rank #1 (Strong Buy).
Inside Our Methodology
Apple has an Earnings ESP of -0.16% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Apple saw positive earnings estimate revision of a penny over the past seven days for the fiscal second quarter. The iPhone maker has a strong track record of positive earnings surprises. It delivered an average earnings surprise of 4.39% in the trailing four quarters. The Zacks Consensus Estimate indicates a modest year-over-year increase of 5.2% for earnings and 3.6% for revenues.
The tech giant currently has a Wall Street analyst recommendation of 1.96 on a scale of 1 to 5 (Strong Buy to Strong Sell), made by 32 brokerage firms. Of these, 19 are Strong Buy and four are Buy. Strong Buy and Buy, respectively, account for 51.35% and 10.81% of all recommendations. Based on short-term price targets offered by 35 analysts, the average price target for Apple comes to $250.35. The forecasts range from a low of $188.00 to a high of $325.00.
Apple has a solid Growth Score of A but it belongs to a bottom-ranked Zacks Industry (bottom 12%). At current levels, Apple’s stock still looks expensive, trading at 29.43X forward earnings, a premium to the Zacks Computer-Micro Computers industry average of 9.79X.
Here’s What to Watch
The iPhone manufacturer is more vulnerable to tariffs than other firms since most of its production is based in China. About 90% of Apple’s iPhones are manufactured in China, which accounted for 17% of the company’s revenues in 2024. However, its strong service revenues are expected to offset iPhone softness amid ongoing trade tensions and AI development challenges.
Given its higher exposure to China, several analysts warned that Apple could be negatively impacted by a trade war with China. Bank of America cut its price target for Apple stock ahead of its earnings, citing concerns about shifting trade policies and economic uncertainty (read: Are Apple ETFs Ripe for a Rebound?).
While President Donald Trump stated that he expects tariffs on China to “come down substantially,” he does not anticipate them dropping to zero. In response to the potential risks, Apple is reportedly planning to shift the assembly of all iPhones sold in the United States to India by the end of 2026.
On the last earnings call, Apple offered weak sales guidance for the fiscal second quarter. It expects “low to mid-single digit” sales growth.
ETFs Exposed to Apple
Vanguard Information Technology ETF (VGT - Free Report) - Apple accounts for an 18.2% share.
MSCI Information Technology Index ETF (FTEC - Free Report) - Apple accounts for a 17.8% share in the basket.
iShares US Technology ETF (IYW - Free Report) - Apple makes up 16.1% of the assets.
Technology Select Sector SPDR Fund (XLK - Free Report) - Apple accounts for a 14.6% share in the basket.
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Apple ETFs in Focus Ahead of Fiscal Q2 Earnings
Technology giant Apple (AAPL - Free Report) is set to release second-quarter fiscal 2025 results after market close on May 1.
Apple has plunged about 16% so far this year, underperforming the industry’s decline of 5.8%. Most notably, the stock tumbled more than 25% around the President’s “Liberation Day” tariff announcement. But shares rebounded 15% about a week later, buoyed by signs of a potential easing in smartphone-related tariff policies.
The trend might reverse if the online behemoth beats estimates in its quarterly report. It saw positive earnings revision activity, which is generally a precursor to an earnings beat (see: all the Technology ETFs here).
ETFs having the largest allocation to the tech titan are in focus now. Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and Technology Select Sector SPDR Fund (XLK - Free Report) have Apple as the top firm with a double-digit allocation. These ETFs have a Zacks ETF Rank #1 (Strong Buy).
Inside Our Methodology
Apple has an Earnings ESP of -0.16% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Apple saw positive earnings estimate revision of a penny over the past seven days for the fiscal second quarter. The iPhone maker has a strong track record of positive earnings surprises. It delivered an average earnings surprise of 4.39% in the trailing four quarters. The Zacks Consensus Estimate indicates a modest year-over-year increase of 5.2% for earnings and 3.6% for revenues.
The tech giant currently has a Wall Street analyst recommendation of 1.96 on a scale of 1 to 5 (Strong Buy to Strong Sell), made by 32 brokerage firms. Of these, 19 are Strong Buy and four are Buy. Strong Buy and Buy, respectively, account for 51.35% and 10.81% of all recommendations. Based on short-term price targets offered by 35 analysts, the average price target for Apple comes to $250.35. The forecasts range from a low of $188.00 to a high of $325.00.
Apple has a solid Growth Score of A but it belongs to a bottom-ranked Zacks Industry (bottom 12%). At current levels, Apple’s stock still looks expensive, trading at 29.43X forward earnings, a premium to the Zacks Computer-Micro Computers industry average of 9.79X.
Here’s What to Watch
The iPhone manufacturer is more vulnerable to tariffs than other firms since most of its production is based in China. About 90% of Apple’s iPhones are manufactured in China, which accounted for 17% of the company’s revenues in 2024. However, its strong service revenues are expected to offset iPhone softness amid ongoing trade tensions and AI development challenges.
Given its higher exposure to China, several analysts warned that Apple could be negatively impacted by a trade war with China. Bank of America cut its price target for Apple stock ahead of its earnings, citing concerns about shifting trade policies and economic uncertainty (read: Are Apple ETFs Ripe for a Rebound?).
While President Donald Trump stated that he expects tariffs on China to “come down substantially,” he does not anticipate them dropping to zero. In response to the potential risks, Apple is reportedly planning to shift the assembly of all iPhones sold in the United States to India by the end of 2026.
On the last earnings call, Apple offered weak sales guidance for the fiscal second quarter. It expects “low to mid-single digit” sales growth.
ETFs Exposed to Apple
Vanguard Information Technology ETF (VGT - Free Report) - Apple accounts for an 18.2% share.
MSCI Information Technology Index ETF (FTEC - Free Report) - Apple accounts for a 17.8% share in the basket.
iShares US Technology ETF (IYW - Free Report) - Apple makes up 16.1% of the assets.
Technology Select Sector SPDR Fund (XLK - Free Report) - Apple accounts for a 14.6% share in the basket.