We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
After the closing bell yesterday, Apple Inc. (AAPL - Free Report) encouraged investors with blockbuster first-quarter fiscal 2020 results, wherein it topped both earnings and revenue estimates and offered an upbeat outlook for the ongoing quarter.
Apple Q1 Results in Focus
Earnings per share came in at $4.99, beating the Zacks Consensus Estimate by 45 cents and improving 19% from year-ago earnings. Revenues rose 9% year over year a record $91.8 billion and edged past the estimate of $88 billion. This represents the highest Q1 revenues ever, fueled by strong demand for iPhone 11 and iPhone 11 Pro models as well as accelerating growth from Services and Wearables (read: Apple Set to Beat Q1 Earnings Estimates: Tech ETFs to Buy).
iPhone sales rose 7.6% to $55.96 billion, reversing the recent trend of declining growth after the launch of three new handsets — the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max — last September. Meanwhile, Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 16.9% year over year to an all-time high of $12.72 billion. Revenues from Wearables, Home and Accessories, which includes the Apple Watch, AirPods, HomePod, Apple TV, and Beats headphones, soared 37% to $10 billion while iPad and Mac revenues increased 17% and 9%, respectively.
The gadget-maker foresees total revenues in the range of $63-$67 billion for the second quarter of fiscal 2020. The low end of the guidance is well above the current Zacks Consensus Estimate of $62.51 billion.
Market Impact
Following the results, shares of Apple spiked as much as 3% to a new all-time high in aftermarket hours on elevated volume but pulled back at the close to up 1%. The stock currently has a Zacks Rank #2 (Buy) and VGM Score of C. Additionally, it belongs to a top-ranked Zacks industry (top 42%), suggesting some smooth trading in the days ahead.
ETFs to Tap
Given this, investors could consider the following ETFs with the largest allocation to the tech titan. These funds have Apple as the top or second firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) with a Medium risk outlook.
This most-popular technology ETF has $27.7 billion in AUM and charges 13 bps in fees per year from investors. AAPL makes up for roughly 20% of assets (read: 5 Low-Cost Tech ETFs for Investors).
This ETF provides investors exposure to technology stocks with 17.9% allocation in Apple. The fund has AUM of $5 billion and charges 42 bps in fees and expenses.
This fund manages about $26.9 billion in its asset base with 18.5% allocation in Apple. It has 0.10% in expense ratio (see: all the Technology ETFs here).
This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization and Apple accounts for 11.9% share. It has AUM of $89.1 billion and charges 20 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Apple ETFs to Buy Post Blockbuster Q1 Results
After the closing bell yesterday, Apple Inc. (AAPL - Free Report) encouraged investors with blockbuster first-quarter fiscal 2020 results, wherein it topped both earnings and revenue estimates and offered an upbeat outlook for the ongoing quarter.
Apple Q1 Results in Focus
Earnings per share came in at $4.99, beating the Zacks Consensus Estimate by 45 cents and improving 19% from year-ago earnings. Revenues rose 9% year over year a record $91.8 billion and edged past the estimate of $88 billion. This represents the highest Q1 revenues ever, fueled by strong demand for iPhone 11 and iPhone 11 Pro models as well as accelerating growth from Services and Wearables (read: Apple Set to Beat Q1 Earnings Estimates: Tech ETFs to Buy).
iPhone sales rose 7.6% to $55.96 billion, reversing the recent trend of declining growth after the launch of three new handsets — the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max — last September. Meanwhile, Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 16.9% year over year to an all-time high of $12.72 billion. Revenues from Wearables, Home and Accessories, which includes the Apple Watch, AirPods, HomePod, Apple TV, and Beats headphones, soared 37% to $10 billion while iPad and Mac revenues increased 17% and 9%, respectively.
The gadget-maker foresees total revenues in the range of $63-$67 billion for the second quarter of fiscal 2020. The low end of the guidance is well above the current Zacks Consensus Estimate of $62.51 billion.
Market Impact
Following the results, shares of Apple spiked as much as 3% to a new all-time high in aftermarket hours on elevated volume but pulled back at the close to up 1%. The stock currently has a Zacks Rank #2 (Buy) and VGM Score of C. Additionally, it belongs to a top-ranked Zacks industry (top 42%), suggesting some smooth trading in the days ahead.
ETFs to Tap
Given this, investors could consider the following ETFs with the largest allocation to the tech titan. These funds have Apple as the top or second firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) with a Medium risk outlook.
Select Sector SPDR Technology ETF (XLK - Free Report)
This most-popular technology ETF has $27.7 billion in AUM and charges 13 bps in fees per year from investors. AAPL makes up for roughly 20% of assets (read: 5 Low-Cost Tech ETFs for Investors).
MSCI Information Technology Index ETF (FTEC - Free Report)
With AUM of $3.4 billion, the product allocates 18.8% in Apple. The ETF has 0.08% in expense ratio.
iShares Dow Jones US Technology ETF (IYW - Free Report)
This ETF provides investors exposure to technology stocks with 17.9% allocation in Apple. The fund has AUM of $5 billion and charges 42 bps in fees and expenses.
Vanguard Information Technology ETF (VGT - Free Report)
This fund manages about $26.9 billion in its asset base with 18.5% allocation in Apple. It has 0.10% in expense ratio (see: all the Technology ETFs here).
Invesco QQQ (QQQ - Free Report)
This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization and Apple accounts for 11.9% share. It has AUM of $89.1 billion and charges 20 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>