This note from analyst Timothy Arcuri landed in my inbox Monday with a bang:
Valuation has expanded but AAPL still trades a touch below its normal discount vs S&P500. Against this backdrop, results should be fine or better and we think March guide will be fine (focus shifting to iPhone 10/X anyway). Hardware margin pressure is clear (especially in launch this Fall w/~$50 incremental OLED cost) but services remain offset. Regardless, the “powder keg” is about to be lit.
My take: There’s nothing “normal” about Apple’s discount to the S&P 500.
Apple will report its Q1 2017 earnings Tuesday Jan. 31 about half an hour after the markets close. The conference call with analysts starts at 5 p.m. ET (2 p.m. PT). I’ll be listening in. You can too. Click here.