Apple is a Strong Buy this Week
The upcoming week is an important one for binary options traders of all asset categories. Of course, the biggest story of the week in the equity sector is Apple’s earnings results. Apple (AAPL) has been a laggard in the tech sector, behind giants, Microsoft (MSFT), Google (GOOG) and Amazon (AMZN). However on Tuesday, 27 October 2015, Apple is expected to release its most recent earnings report. Analysts from top investment companies across the spectrum are anticipating the earnings per share to rise from the same period a year ago to $1.88. Revenues are expected to come in at $51.1 billion. Based on the positive sentiment around Apple, I would strongly advise traders to place call options on the stock ahead of the announcement. As a binary options trader you can only benefit from this important quarterly update from the world’s number one technology company.
Apple Revenue Future Projections & Past Performance
Just to recap, this is what is likely from Apple’s latest financial earnings report:
• Earnings per share (EPS) of $1.88
• Revenues in the region of $51.1 billion
• A minimum 5% stock price appreciation by the end of the week (the fact that we are looking at 5% is irrelevant for binary options traders, but it gives us plenty of leeway to anticipate the direction of price movement)
NASDAQ Composite 1-Month Performance
On the indices front, you have many options available this week. However, the Apple story is a big one – so big in fact that it is going to influence the Nasdaq (QQQ) tremendously. Apple is ranked as the #1 company in the world, second only to Google. The company’s market capitalisation is an astonishingly large $679 billion, with a price-earnings ratio of 13.75, a 1-year target of $150 and a current yield of 1.8%. Apple’s share price opened the day at $119.08, and after the earnings announcement is posted, we are expecting Apple’s share price to appreciate by as much as 5% during the week ending Friday, 30 October. Already we have seen the three other major technology companies in Google, Amazon, and Microsoft make substantial gains. Apple is the ranking technology stock and provided the consensus estimates of analysts across the board are correct, the Nasdaq is bound to rally.
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