Bright days are ahead for Apple Inc. (AAPL), as impressive earnings and results led to immense surges in stock prices and great growth projections.
Investopedia reported that Apple shares soared by 18 percent since June 1 and increased 11 percent year to date. This is due to the Cupertino, California-based tech giant's propensity to beat earnings per share estimates and how well the stock is trading--something which would lead to more upside in the near-term.
Moreover, the Apple stock price increace is due to opportunities in 5G, augmented reality, health care and transportation, according to respected analyst Gene Munster in an interview on CNBC's "Squawk Box."
Apple Stock Forecast 2021: Up to $200 Per Share
Munster even expressed optimism that Apple could be easily worth $200 per share next year, making Apple the best performing stock among the five prominent American tech companies, Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG), in the second half of 2021.
Apple is slated to report its quarterly financial results on July 27, Fintech Zoom said in a report.
On Wednesday, AAPL closed higher by 2.41 percent at $149.15 in the Nasdaq Composite Index, Yahoo Finance added.
Investopedia further noted that Apple had beaten estimates by double digits in three out of four prior quarters. It also expects AAPL to have further increasing earnings per share estimates, given that its EPS had increased in the past two months.
Apple's Impressive History of Beating Earnings Estimates
With Apple's impressive history of beating estimates, such upward trend is expected. The report also emphasized how the AAPL stock has been chasing earnings in the succeeding quarters that should lead to better results in the current frame.
With this enticing trend, as Apple continues to beat analyst estimates for earnings, the current quarter would not be an exception. The EPS trend remains on the rise in analysts' view. As a result, money should continue to add up in the AAPL stock coffers and reach all-time highs. These would lead to more bullish activity in the near-term.
5G, iPhone Sales to Drive Apple Stocks Growth
Meanwhile, more positive outlooks continue to pour in for the stock, as analyst Samik Chatterjee has included Apple to J.P. Morgan's "focus list" on Wednesday, The Motley Fool shared. Chatterjee projects Apple shares to reach $175 due to impressive iPhone and Mac revenues. This would mean Apple shareholders would enjoy gains of about 17 percent from the stock's current price of $149.
This surging trend points to Apple taking advantage of 5G technologies, offering users with superbly faster download times and allow a vast array of advanced technologies. The iPhone sales have also strengthened demand for Apple's array of services. Such high-margin revenue streams would then fuel the tech giant's impressive earnings growth. Bullish investors are definitely excited about the possibility of greater profits, which beefed up Apple's stock performance that has reached all-time highs.