Apple will officially unveil the iPhone 8 on Sept. 12
Apple Inc. (NASDAQ:AAPL) just confirmed rumors about an event on Sept. 12, with the Silicon Valley titan set to introduce the much-anticipated iPhone 8. AAPL stock just hit a record high of $164.52, but while the shares tend to underperform in the
month of September, two Apple
suppliers could be flashing short-term "buy" signals:
Cirrus Logic, Inc. (NASDAQ:CRUS) and
Broadcom Ltd (NASDAQ:AVGO).
CRUS Stock Eyes Highest Close in 4 Weeks
Cirrus Logic stock was last seen 0.5% higher at $57.97, on pace for its highest close in four weeks. The stock ended last month on a sour note, after the company reported uninspiring quarterly earnings, but found an ally in the form of its 320-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, pullbacks to this trendline have marked opportune entry points for CRUS bulls in the past.
Specifically, after the last six pullbacks to the 320-day moving average, CRUS stock was up an average of 9.62% one month later. From the equity's current perch, another 9.62% gain would place Cirrus shares around $63.55 -- where they were trading before earnings.
AVGO Stock Could Flirt With Record Highs
Broadcom stock is up 2.4% at $251.90, and has rallied more than 42% so far in 2017. The Apple supplier's shares recently pulled back to their 80-day moving average after a significant time north of the trendline -- a signal that's been positive for AVGO in the past.
Per White, AVGO stock was up an average of 0.81% a week after the last eight pullbacks to the 80-day, and was positive 88% of the time. One month after a pullback, Broadcom stock was higher more than half the time, averaging a gain of 2.82%. Another 2.82% rally for the shares would put them around $257.25 -- within striking distance of their Aug. 24 record high of $259.36.
Wall Street Already Loves CRUS, AVGO
From a contrarian perspective, however, traders should be cautious. Although both CRUS and AVGO stocks have underperformed the broader S&P 500 Index (SPX) during the past month, analysts remain enamored. For AVGO, 23 of 24 brokerage firms rate it a "buy" or better, and two-thirds of analysts following CRUS have doled out "buy" or better endorsements. What's more,
options traders remain relatively call-heavy on both stocks, and short interest isn't much to write home about. As such, Cirrus Logic and Broadcom could struggle to find fresh converts, with Wall Street already in the bulls' corner.