Today’s Apple earnings could well be the company’s most boring quarterly report this year. But if you’re looking for a no-risk time to throw some short-term cash at Apple stock, now could be the right moment.
Well, according to CNBC’s Jim Cramer, at least.
Ahead of Apple’s Q3 earnings announcement later today, Cramer suggest that even “subpar” numbers could cause an Apple stock rally. “There’s a lot of thought that Apple, people are so bearish on it, that it can rally on a subpar number,” Cramer said.
As I noted yesterday, analysts aren’t exactly predicting that Apple will set the world on fire this quarter. They’re forecasting roughly a 10% drop in earnings per share for the fiscal quarter. But even a “meh” result (my words, not Cramer’s) could send the sotk upwards.
“That’s been the theme: When you have this better than feared, the stocks go higher,” Cramer continued. “It’s all about better than feared. People really feared this earnings period. It turns out that that fear was not justified.”
Currently Apple stocks are trading at $209.68. Overall, Apple stock is up 33% this year. However, it’s continued to be hampered by fears relating to China. With a combination of shrinking iPhone sales in the region and tariff fears, China has held back Apple stock.
A challenging year for AAPL
Apple has had a very mixed year in terms of its stock price, with big highs and lows. The company hit $1 trillion last summer. But this was followed by a crash later in the year. Since then, Apple has been recipient of both a “death cross” and a “golden cross.”
At present, some investors seem to be looking at 5G as Apple’s next big hope of a stock surge. While 5G iPhones aren’t going to happen until 2020, Cramer seems to think that now may actually be a pretty good time to invest in Apple. At least, in terms of it being a relatively sure thing.
Source: CNBC
