Avoid Buying AAPL Ahead of Earnings Due to High Valuation

3 months ago

Parkev Tatevosian, CFA

"Apple share price is trading near its 52- week high. So even though its actual results have improved only like slightly, the stock price has reacted aggressively to the positive developments getting ahead of itself here. The share price at $264 is near the 52- week high of 265 and it's well above the intrinsic value or fair value I calculated for Apple at 215. So to answer the question, should you buy Apple stock ahead of earnings? I would say no. I would say there is no urgency to buy Apple stock ahead of earnings. I would wait until after the results come out, digest the financial results, digest the information that the company's management team provides. Learn more about the impact of tariffs and how much longer Apple can earn these exemptions uh and avoid some of these tariffs and just how large will the impacts of tariffs be on Apple moving forward."

The speaker advises investors not to purchase Apple stock before the upcoming earnings release. Despite recent improvements in sales and revenue, the stock is trading near its 52-week high and is expensive relative to its intrinsic value. The recommendation is to wait for the earnings report to better assess Apples performance and risks related to tariffs and manufacturing costs.

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