For immediate release
Chicago, IL – January 31, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW.
Here are highlights from Friday’s analyst blog:
Apple posts record quarterly revenue: ETFs to buy
After yesterday’s closing bell, Apple Inc. reported strong results for the first quarter of fiscal 2022. The tech giant beat estimates for revenue and profit and recorded all-time record quarterly earnings.
Driven by strong results, Apple shares rose about 5% in after-hours trading on strong volume, erasing half of their losses so far this year. Investors could capitalize on Apple’s success with ETFs, with the biggest allocation to the tech titan. funds such as SPDR Fund for the Technology Sector, Vanguard Information Technology ETFs, MSCI Information Technology Index ETF and iShares US Technology ETF having Apple as the top company with a double-digit allocation and sporting a Zacks rank of #1 (strong buy) or 2 (buy).
Apple results at a glance
Earnings per share came in at $2.10, beating Zacks’ consensus estimate of $1.89 and better than earnings of $1.68 a year earlier. Revenue rose 11% year-over-year to a record $123.9 billion and slightly exceeded the estimate of $118.6 billion (see: all tech ETFs here).
The iPhone maker weathered supply chain challenges such as pandemic-induced factory closures and shipping delays well and benefited from a flood of new products, including the iPhone 13, Apple Watch Series 7 and updated Macs. Additionally, the pandemic has accelerated the adoption of digital tools for communication, learning and entertainment, allowing Apple to skyrocket its sales.
iPhone sales jumped 9% to $71.63 billion while revenue from services, including iTunes, Apple Music, iCloud, Apple Pay and Apple Care, jumped 24% year-on-year another to hit a record $19.5 billion. Revenue from wearables, home and accessories, which includes Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, rose 13% to $14.7 billion. iPad sales fell 14% to $7.2 billion while Mac sales rose 25% to $10.9 billion.
Apple became the world’s largest publicly traded company at $3 trillion earlier this year, but a tech crisis caused its shares to fall more than 11%. It continues to explore new markets such as automated cars and virtual reality.
Apple has many projects underway. It plans to launch computerized glasses with augmented reality technology in 2022 and is also developing a virtual reality headset. Apple is also working on an autonomous electric vehicle that could be on the market as early as 2025 (read: Apple hits $3 billion market cap for the first time: ETFs to buy).
The year 2022 could be more important in terms of new products. Apple is planning its widest lineup of launches yet, including a new iPhone SE and iPad Air with 5G as early as this spring, according to Bloomberg.
Apple now has 785 million paying subscribers on its platform, up from 745 million a quarter ago.
ETFs to buy
SPDR Fund for the Technology Sector
Technology Select Sector SPDR Fund targets the broader technology sector and tracks the Technology Select Sector Index. He has around 76 stocks in his basket, with Apple accounting for 24.1% of the shares. Technology Select Sector SPDR Fund holds key interests in software, technology hardware, storage and peripherals, semiconductors and semiconductor equipment, and IT services.
Technology Select Sector SPDR Fund is the most popular and widely traded ETF, with $44.7 billion in assets under management and an average daily volume of 13.8 million shares. The fund charges 12 basis points in fees per year (read: 5 cheap ETFs to play amid tech stocks’ worst start since 2016).
Vanguard Information Technology ETFs
Vanguard Information Technology ETF manages approximately $48.8 billion in assets and offers exposure to 362 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple has a 21.6% share.
Vanguard Information Technology ETF has an expense ratio of 0.10% while volume is strong at nearly 911,000 shares.
MSCI Information Technology Index ETF
The MSCI Information Technology Index ETF is home to 368 technology stocks with assets under management of $6.2 billion. It tracks the MSCI USA IMI Information Technology Index. Apple represents 21.5% allocation.
The MSCI Information Technology Index ETF has an expense ratio of 0.08% while volume is strong at 362,000 shares per day.
iShares US Technology ETF
iShares Dow Jones US Technology ETF tracks the capped Russell 1000 Technology Index RIC 22.5/45, providing investors with exposure to 154 US electronics, software and hardware, and information technology companies. Apple represents 18.5% of assets.
iShares Dow Jones US Technology ETF has assets under management of $8.2 billion and charges 41 basis points in fees and expenses. Volume is good as it trades nearly 709,000 shares per day (read: Why these tech ETFs are good buys).
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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Apple Inc. (AAPL): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares US Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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