For Immediate Release
Chicago, IL – August 03, 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 includeApple Inc. (NASDAQ:(AAPL - Free Report) – Free Report), iShares Dow Jones US Technology ETF (NYSEARCA:(IYW - Free Report) – Free Report), Select Sector SPDR Technology ETF (NYSEARCA:(XLK - Free Report) – Free Report), Vanguard Information Technology ETF (NYSEARCA:(VGT - Free Report) – Free Report)and MSCI Information Technology Index ETF (NYSEARCA:(FTEC - Free Report) – Free Report).
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Here are highlights from Wednesday’s Analyst Blog:
Buy Top-Ranked Apple ETFs on Solid Earnings
Technology giant Apple Inc. (NASDAQ:(AAPL - Free Report) – Free Report) encouraged investors with solid third-quarter fiscal 2017 results after the closing bell yesterday. The company surpassed our earnings and revenue estimates, and offered an upbeat outlook for the fourth quarter.
In addition, Apple signaled that its upcoming 10th-anniversary phone lineup is on schedule, erasing all concerns about the possible delays of the high-end iPhone that recently took a toll on its shares. As a result, shares of AAPL jumped as much as 6.3% in aftermarket hours to fresh highs.
Apple Q3 Results in Focus
Earnings per share came in at $1.67, beating the Zacks Consensus Estimate by a dime and improving from the year-ago earnings of $1.42. Revenues grew 7.1% year over year to $45.41 billion and edged past our estimate of $44.71 billion. This marks the third consecutive quarter of accelerating growth (read: Top ETF Stories of July 2017).
Stronger-than-expected iPhone sales as well as strong revenues from service unit, which includes AppleCare, Apple Pay, and Apple Music, were credited to the robust performance.
Apple sold 41.03 million iPhones in the fiscal third quarter, up 1.6% year over year and above the Wall Street estimate of 40.7 million units. This has resulted in total revenue of $24.85 billion, representing a 3% increase from the year-ago quarter and accounting for 63% of total revenue. Meanwhile, Service revenue reached a record of $7.3 billion, up 21.6% from the year-ago quarter.
Re-energizing iPad and Mac sales also contributed to revenue growth. This is especially true as iPad sales surprisingly grew 15% to 11.42 units, reversing the long streak of annual declines. In fact, the quarter marked the first increase in iPad’s year-over-year quarterly sales since 2014. Unit sales for Mac desktop computers rose 1% year over year to 4.29 units.
The ubiquitous gadget-maker foresees revenues in the range of $49–$52 billion for the fiscal fourth quarter. The lower end is much above the current Zacks Consensus Estimate of $49.15 billion and expectation of $49.21 billion of analysts polled by Thomson Reuters.
Apple currently has a Zacks Rank #3 (Hold) and belongs to a solid Industry Rank in the top 23%, suggesting significant upside for the stock over the coming days. Further, Apple flaunts a solid Value Style Score of B and a Growth Style Score of C.
ETFs in Focus
Given this, investors seeking to tap the bullish trend on 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 of 1 (Strong Buy) or 2 (Buy) (see: all the Technology ETFs here):
iShares Dow Jones US Technology ETF (NYSEARCA:(IYW - Free Report) – Free Report)
This ETF provides investors exposure to technology stocks with 16.5% allocation in Apple. The fund has AUM of $3.6 billion and charges 44 bps in fees and expenses. It has a Zacks ETF Rank of 1 and has gained 21.5% so far this year.
Select Sector SPDR Technology ETF (NYSEARCA:(XLK - Free Report) – Free Report)
This most popular technology ETF has $17.1 billion in AUM and charges 14 bps in fees per year from investors. AAPL makes up for roughly 14.7% of assets. It has a Zacks ETF Rank of 2 and has added 19.7% in the same time frame.
Vanguard Information Technology ETF (NYSEARCA:(VGT - Free Report) – Free Report)
This fund manages about $13.9 billion in its asset base with 14% allocation in Apple. It has 0.10% in expense ratio and has a Zacks ETF Rank of 2. VGT is up 22% in the same time frame (read: Technology ETF Hits New 52-Week High).
MSCI Information Technology Index ETF (NYSEARCA:(FTEC - Free Report) – Free Report)
With AUM of $1 billion, the product allocates 13.9% in Apple. The ETF has 0.08% in expense ratio and a Zacks ETF Rank of 2. It has gained 21.8%.
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