While Treasury notes and precious metals are the default safe havens amid a raucous equities market, one stock analysts are loving is Apple. While the capital markets are getting roiled by volatility, Apple can help mute the impact of trade wars, according to some analysts.
What’s giving Apple this type of immunity or imperviousness to market pain?
“We believe Apple is more likely to absorb all the tariff impact and not raise prices on iPhone shipments and other hardware devices into the US, which we estimate will lead to a ~300 bps headwind to iPhone margins,” J.P. Morgan analysts said.
Furthermore, this represents an opportunity for investors to get in on Apple stock while it’s experiencing a pullback. In others words, there’s some value to be had there.
“In the broader context of the tailwinds that AAPL (Apple) has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple,” the analyst said.