Is Apple stock a good buy ahead of the Q3 results?

Apple Inc (NASDAQ: AAPL) is set to report its results for the fiscal third quarter in the final week of July. Ahead of earnings, Amit Daryanani pegs its fair value at about $180 a share.

Apple stock can beat the consumer slowdown

Signs of a consumer slowdown amidst decades-high inflation have started to show up in recent weeks. But the Evercore analyst is convinced AAPL is well-positioned to offset that downturn. On CNBC’s “Squawk Box”, he said:

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So far, limited data points have validated that high inflation is impeding consumer demand. But for Apple, I think there’s a lot of other things within the ecosystem of monetisation that they can do to offset the iPhone.

Historically, Apple stock tends to outperform in its fiscal third quarter. The American multinational has a rock-solid balance sheet that makes it a smart pick for the looming recession as well.

Daryanani doesn’t see ‘China’ as much of a threat

China is still struggling with the COVID which means bad news for Apple Inc, considering it’s the manufacturing hub for the iPhone maker. Daryanani, though, doesn’t see it as much of a threat for Apple.

Question this fall will be can Apple have enough capacity given all the manufacturing issues in China. I would say look at the last few years. They’ve done a great job with it. It should be easier for them this year.

If the new iPhone 14 that’s set to launch this fall is “innovative” enough, the handset might just manage to beat the consumer slowdown, he concluded.

In percentage terms, Daryanani is forecasting about a 25% upside in the stock that’s currently trading at a trailing 12-month price-to-earnings multiple of 23.64.