From Rich Smith’s “Why Apple Stock Floated Higher Today” posted Tuesday afternoon on The Motley Fool:
Joining the rest of the stock market in bouncing, Apple (NASDAQ:AAPL) shares defied gravity today and levitated a solid 3% through 1:25 p.m. EDT.
Helping the tech giant recover from yesterday’s selling was a positive analyst note from investment banker UBS.
One day after analysts at Deutsche Bank said that they see “strong momentum across all of [Apple’s] businesses,” and investment bank Bernstein predicted a modest beat by Apple in its upcoming third fiscal quarter of 2021, UBS chimed in today with a reiterated buy rating of its own.
“Based on strength in iPhones in what is typically a seasonally slower quarter and better Mac sales despite supply chain headwinds,” StreetInsider.com reported, UBS said it was raising its third-quarter 2021 revenue and EPS estimates to $74.7 billion and $1.01, respectively, from $71.3 billion and $0.95.
So, are $74.7 billion in sales and $1.01 EPS good or bad?
My take: Those estimates, unlike the children of Lake Wobegon, are below average. I’ve asked to see both notes.