Goldman Sachs: Buy Apple Stock Before January 29th Results
Apple, a dominant force in the global technology landscape, is currently experiencing a slight dip in its stock performance as investors await the company’s first-quarter results for fiscal 2026, scheduled for release on January 29th. The stock has declined by approximately 9% over the past month. However, Goldman Sachs analysts are viewing this period as a favorable opportunity for investors to increase their holdings of Apple shares. The anticipation surrounding the upcoming results is heightened by optimistic forecasts for iPhone revenue, projecting a 13% year-over-year increase, accompanied by a 5% rise in shipments. This growth is fueled by a significant surge in Chinese smartphone sales, expected to climb 26% following Apple’s regained leadership position in the Chinese market.
The outlook for Apple’s sales over the next two years is bolstered by several key factors. Analysts predict that iPhone sales will benefit from the introduction of the new iPhone Fold model, along with the company’s planned shift to a biannual iPhone launch cycle. This strategic shift is anticipated to manage supply and demand more effectively, aligning with consumer preferences and technological advancements. Furthermore, continued innovation is expected to drive sales across Apple’s product lines, including the iPad Pro, Vision Pro headset, and the 14-inch MacBook Pro.
Apple’s recent financial performance has been marked by strong growth. During its fourth-quarter results for fiscal 2025, reported on October 30th, total net sales increased by 8% year-over-year, reaching $102.5 billion, surpassing the estimated $101.2 billion. Product revenues accounted for the majority of this growth, increasing by 5.4% to $73.72 billion. iPhone sales rose by 6% compared to the previous year, reaching $49.03 billion. CFO Kevan Parekh highlighted the strong installed base of active devices, which reached an all-time high across all product categories and geographic segments, driven by high consumer satisfaction. The fourth-quarter earnings per share (EPS) increased by 91% from the year-ago value to $1.85, exceeding the estimated $1.73 per share.
Wall Street analysts are overwhelmingly positive about Apple’s prospects. Analysts at Evercore ISI and Citigroup have both expressed strong confidence in the company’s core business, anticipating significant growth in iPhone sales, predicting a 17% year-over-year increase. Evercore ISI also reiterated an “Outperform” rating and a $330 price target, noting the potential for average selling prices to exceed expectations as sales shift to higher-end models. Citigroup shares this optimistic view, attributing the company’s success to continued iPhone performance. Despite cutting the price target from $330 to $315 due to anticipated 50% increases in DRAM costs this year, analysts remain highly confident in Apple’s ability to deliver. Wedbush analyst Dan Ives has declared 2026 a “monumental year” for Apple, reiterating an “Outperform” rating and a Street-high $350 price target, believing the company will “dive into the deep end of the pool on its AI strategic roadmap.”
The overall consensus among Wall Street analysts is a “Moderate Buy” rating for Apple stock. Of the 42 analysts rating the stock, 21 analysts have a “Strong Buy,” three analysts suggest a “Moderate Buy,” 16 analysts play it safe with a “Hold” rating, one analyst suggests “Moderate Sell,” and one analyst has a “Strong Sell” rating. The consensus price target of $289.21 represents 17% potential upside from current levels, while the Street-high price target of $350 indicates 41% potential upside from here. As investors await the release of Apple’s first-quarter results, these optimistic projections underscore the company’s continued dominance and potential for future growth within the technology sector.
