Apple Could Soar Heading into Second Quarter Earnings

Since the start of the year, shares of Apple Inc. (NASDAQ: AAPL) have been relatively flat. However, with the company set to roll out earnings on April 30, we expect the stock to start ramping up ahead of that report. 

Growth expectations remain strong, largely driven by continued global demand for the iPhone. Supporting that, 9to5Mac reports that Apple’s global smartphone shipments rose 5% year over year in the first quarter, even as the broader market experienced declines.

Fueling a good deal of momentum, iPhone revenue reached $85.27 billion, surpassing analyst expectations of $78.65 billion in the first quarter. Heading into the second quarter, another period of strong growth would not be surprising. The company’s own outlook reinforces this optimism. Apple expects second-quarter revenue to increase between 13% and 16% year over year, implying a total revenue range of approximately $107.8 billion to $110.7 billion. 

Analysts at Wedbush Securities are also bullish on the stock. With an outperform rating and a $350 price target, analyst Daniel Ives noted that several Mac mini and Mac Studio models are currently facing shipping delays of two to five months. Wedbush views these extended lead times as a positive sign, indicating that demand for Apple’s high-end desktop products is significantly outpacing supply.

Nike’s Turnaround Stalls as China Weakness and Margin Pressures Mount

While Nike (NYSE: NKE) did see some positives in recent earnings, a closer look at the company’s stalled turnaround hopes and guidance tells us plenty of challenges remain. All of which makes the stock – now a falling knife at 2016 lows – far less attractive. 

Granted, EPS of 35 cents beat estimates by seven cents. Revenue of $11.28 billion, up 0.1% year over year, beat by $50 million. On the surface, those numbers might appear encouraging, especially in a difficult retail environment.

Unfortunately, it’s the company’s high debt, low margins, and a price-to-earnings ratio of 28, which is somehow higher than the competition, that makes the stock a pass for me. Supporting my view, management says fourth quarter sales could decline 2% to 4% on an annual basis. That’s causing a problem because if we look back at prior management comments, the company expected to see improvements later this year. 

And Wall Street has apparently lost its patience. When expectations are again delayed, confidence in efforts tends to fade, which we’re now seeing.  And unfortunately, analysts and investors are exhausted from hope.

Also, Greater China has become a deep thorn in turnaround efforts. For one, Nike has now experienced sales declines in China for seven straight quarters. That shows no signs of ending. Management also expects its Greater China segment to be down about 20% year over year in the fourth quarter. That also raises questions about Nike’s future turnaround. That means Nike’s position in China is weakening, with Chinese consumers opting for domestic brands. In short, thanks to stronger competition and cooling consumer demand, China will remain a deep thorn in Nike’s turnaround efforts.

Nike doesn’t report earnings until June 25. But unless it can turn its issues around in the near term, we aren’t expecting to see anything impressive.

Walmart’s Consistent Growth and Shareholder Returns Support Further Gains

Up about 14% since the year began, Walmart (NASDAQ: WMT) could see higher highs – especially as it nears its first quarter 2027 earnings report on May 21.

In its last quarter, the company narrowly beat fourth-quarter earnings estimates, announced a new share repurchase program, and raised its annual dividend to 99 cents per share, marking its 53rd consecutive year of dividend increases. We also have to consider that the dividend is safe thanks to the company’s massive free cash flow.

Looking forward, Street expectations are high for another solid quarter. The current EPS estimate for Q1 2027 is 66 cents, which would be a 6.5% jump year over year. Revenue is expected to come in at around $172.11.

Earnings Outlook Favors Apple and Walmart While Nike Faces Ongoing Uncertainty

In summary, Apple stands out as a likely leader heading into earnings, supported by robust iPhone sales and encouraging forward guidance. Walmart also remains a steady performer, leveraging scale, consistent cash flow, and shareholder-friendly initiatives to push higher. Unfortunately for Nike, it continues to face mounting headwinds, from weakening demand in key international markets to fading investor confidence in its turnaround story.