Apple’s Guidance Is Key

Apple heads into earnings with investors focused on guidance rather than just beats, since the stock is nearing its all-time closing high. Shares were up about 0.8% ahead of the report, trading around $272 and roughly 5% below the $286.19 closing high. The company’s high forward valuation (about 30x expected next-12-month earnings vs a five-year average of 27.4x and the S&P 500 at ~21.1x) raises the bar for management to demonstrate durable demand amid sticky inflation, higher rates and oil-price pressure from the Iran war. UBS lifted its price target to $287 (from $280) and expects a “solid June guide,” but keeps a Neutral rating. A strong forward outlook would be needed to convince investors the stock can surpass its prior high; weak guidance could weigh on Apple and broader market sentiment given Apple’s market-cap influence.