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1 Incredible Reason to Buy Apple Stock Before It Reports Earnings on July 30
Key Points
Apple's upcoming earnings report could bring further confirmation of consumers' devotion to the company.
iPhone and wearables metrics are likely to be points of emphasis for analysts and investors.
Count Apple (NASDAQ: AAPL) among the bellwether companies reporting earnings this week. The iPhone maker is scheduled to deliver fiscal third-quarter results on Thursday, July 30, and analysts are calling for earnings per share of $1.88 on sales of $108.8 billion.
Of course, Apple is a tech stock, but its consumer tie, which is nearly unmatched in the tech sector, may be a reason to buy the stock ahead of earnings. Last month, CEO Tim Cook said Apple is planning price hikes on some devices to offset soaring semiconductor costs for memory.
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Apple stock could be worth loving into earnings if consumer demand is strong. Image source: Getty Images
That announcement arrived as consumers were already dialing back on other fronts, indicating that any constructive commentary from Apple regarding consumer demand could be a near-term catalyst for the shares.
Something for investors to keep an eye on is what the company has to say regarding iPhone demand. There's speculation, though it's unconfirmed, that the company is bracing for a decline in iPhone demand amid surging hardware costs. If that notion is dispelled or it's proven that consumers are still engaged despite higher prices, the stock could rally.
It's not just the iPhone that makes Apple a consumer play. The company is the largest purveyor of wearable tech gadgets, including earbuds and smartwatches. In the first quarter, global wearables demand was strong, with shipments rising 4.3% year over year.
In March, Apple bolstered its wearables portfolio with the debut of AirPods Max 2. These noise-canceling headphones are pricey, selling for $549 a pair on Apple's website. So if Apple confirms that demand for that product has been solid, it may be a sign that the consumer is a credible spark for the stock.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.