Analyst Reiterates Bullish Position on Apple Stock

Seasonality shows AAPL is one of the best stocks to own in July

Deputy Editor
Jul 1, 2022 at 9:31 AM
facebook X logo linkedin

J.P. Morgan Securities today reiterated its position on Apple Inc (NASDAQ:AAPL), maintaining its "overweight" rating, $200 price target, and fiscal 2024 estimates. The analyst acknowledged other firms' skepticism regarding AAPL's prospects amid a slowdown of consumer spending and currency headwinds, but said better fiscal supply dynamics in the third-quarter "will overwhelm the modest demand weakness."

Despite the bull note, Apple stock is muted ahead of today's open, last seen down 0.4% to trade at $136.12. The equity has an intriguing entry point, sitting 23% lower year-to-date following three-straight monthly losses. What's more, Apple stock is just one of two FAANG concerns to land on Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 best stocks to own in July, which indicates near-term strength. In fact, the security has averaged a one-month return of 6.4% going back 10 years, with all but one of these returns being positive. 

Analyst sentiment is firmly bullish at the moment, with 19 of 21 in coverage rating the security a "buy" or better, coming into today. What's more, the 12-month consensus price target of $186.73 is a 37.2% premium to last night's close.

An unwinding of options traders' pessimism could put more wind at the stock's sails, as puts are being picked up at their quickest clip in a year. This is per AAPL's 10-day put/call volume ratio of 1.04 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 100% readings from the past 12 months.

Mirroring this sentiment, short-term options traders have rarely been more put-biased than they currently are. This is per Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 1.12, which stands in the 99th percentile of annual readings.

It's also worth noting that the equity's Schaeffer's Volatility Scorecard (SVS) stands at 91 out of 100. This elevated score indicates AAPL has exceeded options traders' volatility expectations over the past year -- a boon for premium buyers.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI