Back to top

Image: Bigstock

Buy Apple Stock for Safety During Continued Coronavirus Uncertainty?

Read MoreHide Full Article


On today’s episode of Full Court Finance here at Zacks, Ben Rains takes a look at the broader earnings picture, as the coronavirus economic shutdown continues to dampen second quarter estimates. The episode then dives into all things Apple (AAPL - Free Report) , to see if investors should consider buying the iPhone giant’s stock for safety during the pandemic. 

Wall Street and investors appear to be looking ahead with hope that the global economy can start to return to something relatively close to normal. That said, the coronavirus still hangs over the world, and volatility could remain amid broad uncertainty.

Our Zacks earnings estimates also keep falling sharply for the second quarter, which is hopefully where the full impact of the coronavirus shutdown takes place.

The tech sector has proven resilient. And the FAANG stocks have become safe-havens, with Facebook (FB - Free Report) , Google (GOOGL - Free Report) , Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Apple all in the green in 2020, with the S&P 500 still down 9%.  

With this in mind, Apple topped our Q2 fiscal 2020 estimates at the end of April. The company’s wearables and services units remain growth drivers and helped pick up the slack for the iPhone. Apple still faces setbacks on both the supply and demand sides, but its cash, dividend, and buybacks make it a safe play during these unprecedented times.

Apple stock climbed again on Monday as it races back toward its 52-week highs, alongside Microsoft (MSFT - Free Report) . Investors should also note AAPL stock is trading at a solid discount against MSFT in terms of forward 12-month sales estimates.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>