3 Apple Suppliers to Watch Ahead of WWDC

Apple will host its Worldwide Developers Conference next week

Jun 2, 2017 at 11:39 AM
facebook twitter linkedin


Apple Inc. (NASDAQ:AAPL) will kick off its highly anticipated Worldwide Developers Conference (WWDC) on Monday. While past WWDC unveilings have included the Mac Pro, iPhone, and iCloud, this year's announcements are expected to center on iOS updates and a new MacBook lineup. While AAPL stock will be in the spotlight next week, Apple suppliers Cirrus Logic, Inc. (NASDAQ:CRUS)Micron Technology, Inc. (NASDAQ:MU), and Texas Instruments Incorporated (NASDAQ:TXN) will likely draw attention, too. Here's a closer look at the tech stocks ahead of the event.

CRUS Stock Trading Near Historically Bullish Trendline

Cirrus Logic makes integrated circuits for audio and voice processing products used in mixed-signal and analog devices. CRUS stock has been a standout on the charts, up nearly 20% year-to-date. And while Cirrus shares are trading down 0.6% today at $67.56, they hit a record high of $68.72 yesterday.

What's more, CRUS stock recently pulled back to its 40-day moving average -- a historically bullish signal. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, in the last 11 times the security has come within one standard deviation of this trendline, it has averaged a 21-day return of 5.5%, and has been positive 80% of the time.

CRUS stock could get a bigger boost, too, should short sellers continue to jump ship. While short interest plunged 22.9% in the most recent reporting period, it still accounts for 6.6% of Cirrus Logic's available float, or nearly four days' worth of pent-up buying demand, at the average pace of trading.

MU Stock Trades North of Support as Short Sellers Emerge

Micron chips focus on memory technology. The shares have more than doubled in value over the last 12 months, last seen trading at $30.85 -- within a chip-shot of taking out Wednesday's two-year high of $31.10. MU stock's 50-day moving average has underlined this impressive price action, while the round $30 could help support any near-term pullbacks.

Micron stock's rise on the charts also appears to have been supported by a steady stream of short covering. Since its mid-September peak, short interest on MU has declined 39%. However, it seems that shorts are re-emerging, with these bearish bets up 12.5% in the most recent reporting period.

Outperforming TXN Stock Overdue for Bullish Analyst Notes

Texas Instruments specializes in analog and embedded processors. TXN stock has been ripping higher over the last 12 months, up 33%. The equity's 80-day moving average has helped usher it higher, with TXN hitting a 16-year high of $83.24 on Wednesday.

Analysts have yet to catch up to this impressive price action, though, which could create more tailwinds for Texas Instruments stock down the road. Of the 20 brokerage firms covering the shares, 12 still maintain a tepid "hold" recommendation. Plus, the average 12-month price target of $85.19 is a slim 4.9% premium to current trading levels. A round of upgrades and/or price-target hikes could have TXN stock trading even higher.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners