- While Apple's performance this year has not surprisingly consolidated the strong upside reversal witnessed in 2013, the momentum going into earnings is still presenting an upside bias for the stock.
- As one of the only individual equity names that we cover closely and carry, we continue to like the position. With a return of almost 40% over the past year, the value potential in Apple has both outperformed the broader indexes (SPX~20% & Nasdaq~29%) and its closest tech contemporaries - even Google (~35%) and Amazon (~27%).
- Considering our expectations that risk aversions and volatility are poised to rise in the equity markets through the balance of the year, we appreciate Apple's 20 month rolling correlation of only +.13 with the Nasdaq and +0.03 with the SPX.
For further reading on this concept - see some of our previous Apple notes:
The Universal Law of Gravitation