Apple stock has been trading sideways for the past four months, now even after a slew of catalysts and announcements so far in 2015 that should have driven the stock higher. Analyst Rich Ross of Evercore ISI, however, feels that one should not view the inability of the stock to provide upside as a negative. Instead, he suggests that investors focus on the strength of the stock, which is not letting it break below the trading range and he says is a big positive.
Apple stock “rock” solid
Referring to Apple as rock solid, Ross notes that the company’s technology has been sturdy in the volatile market, saying, “And there’s no bigger rock than Apple.” The analyst says that he is still a big buyer of the stock. Referring to the stock chart, Ross told CNBC, “You see the stock has held that 100-day moving average. That’s your key line of support, defining that uptrend.”
Ross further noted that for the last five months, there has been a bullish continuation pattern called a “pennant” or “flag.” This suggests that there could be an upside of another $20 to $26 on the stock, which would bring it up to around $156. The analyst noted that Apple’s stock is a great assurance for investors against the backdrop of increasing macro volatility.
Apple Music brings big potential
Apple’s Worldwide Developers Conference (WWDC) starts today and could really bring in some good news for investors. Kevin Nabipour, SVP of Content Strategies at Allison & Partners, discussed what investors can expect this year at the event. He said he is most excited about Apple Music. Nabipour said, “I am trying to figure out when is the moment they are going to unveil publicly the relationship and the partnership with Beats.”
Nabipour noted that this time, iTunes sales can decline marginally as the iPhone maker is ramping up its streaming plans. The Apple TV is also an awaited product from the company, and Nabipour said that he wants to know what the company is actually planning as he expects the product to be within the HomeKit framework.