Apple ETFs in Focus Ahead of Fiscal Q2 Earnings

Core Viewpoint - Apple is set to release its second-quarter fiscal 2025 results on May 1, with the stock having declined approximately 16% year-to-date, underperforming the industry decline of 5.8% [1] Financial Performance - Apple has experienced a positive earnings estimate revision of $0.01 over the past week, with a Zacks Consensus Estimate indicating a year-over-year earnings increase of 5.2% and a revenue increase of 3.6% [5] - The company has a strong track record of positive earnings surprises, averaging 4.39% over the last four quarters [5] - Apple currently has an Earnings ESP of -0.16% and a Zacks Rank of 3 (Hold) [4] Analyst Recommendations - The average Wall Street analyst recommendation for Apple is 1.96 on a scale of 1 to 5, with 19 out of 32 brokerage firms rating it as Strong Buy and 4 as Buy [6] - The average price target for Apple is $250.35, with a range from a low of $188.00 to a high of $325.00 [6] Market Position and Valuation - Apple has a solid Growth Score of A but is in a bottom-ranked Zacks Industry (bottom 12%) [7] - The stock is currently trading at 29.43X forward earnings, which is a premium compared to the Zacks Computer-Micro Computers industry average of 9.79X [7] Tariff Exposure and Production - Approximately 90% of Apple's iPhones are manufactured in China, which accounted for 17% of the company's revenues in 2024 [8] - Apple is more vulnerable to tariffs due to its high exposure to China, and analysts have warned of potential negative impacts from a trade war [9] - In response to tariff risks, Apple plans to shift the assembly of all iPhones sold in the U.S. to India by the end of 2026 [10] ETF Allocations - Several ETFs have significant allocations to Apple, including: - Vanguard Information Technology ETF (VGT) - 18.2% [12] - MSCI Information Technology Index ETF (FTEC) - 17.8% [13] - iShares US Technology ETF (IYW) - 16.1% [14] - Technology Select Sector SPDR Fund (XLK) - 14.6% [15]