Buy the dip in Amazon or Apple Stock as Earnings Approach?

Set to release their quarterly results after-market hours on Thursday, May 1, Amazon AMZN and Apple AAPL will highlight a much-anticipated week that features reports from big tech firms.Investors are certainly hoping Apple and Amazon will provide better-than-expected financial figures and guidance that starts to offset tariff fears, as both of these Mag 7 stocks have fallen about 15% year to date. That said, Amazon shares are still sitting on +50% gains over the last three years to outperform the broader indexes, while Apple’s +33% has been on par with the benchmark S&P 500 but has slightly trailed the Nasdaq.Image Source: Zacks Investment Research Amazon’s Q1 Expectations Facing backlash from the White House, Amazon had reportedly planned to highlight how higher import charges are raising prices on its platform, particularly among low-price items. Of course, Wall Street and investors alike will be seeking meaningful insight into how tariffs may affect the e-commerce behemoth’s outlook, with Amazon’s Q1 sales expected to be up 8% to $154.56 billion compared to $143.31 billion a year ago.On the bottom line, Q1 EPS is thought to have spiked 19% to $1.35 versus $1.13 a share in the prior year quarter. Notably, Amazon has exceeded the Zacks EPS Consensus for nine consecutive quarters with an average earnings surprise of 25.27% in is last four quarterly reports.Image Source: Zacks Investment Research Apple’s Q2 Expectations Despite much of its production coming from China, Apple has managed to secure exemptions for some of its devices from the U.S. Government, including iPhones, which currently face a 20% tariff instead of the much higher rates on other goods.Still, Apple is in a complex situation, as the tech giant relies heavily on international manufacturing and has shifted some of its production to India to avoid higher tariffs in China. Reporting results for its fiscal second quarter, Apple’s Q2 sales are slated to increase 3% to $93.56 billion from $90.75 billion in the comparative quarter.Apple’s Q2 EPS is expected to be up 4% to $1.60 versus $1.53 per share in the prior period. Posting an average EPS surprise of 4.39% over the last four quarters, Apple has beaten earnings expectations for 8 consecutive quarters.Image Source: Zacks Investment Research Tracking Amazon & Apple's Outlook Based on Zacks' estimates, Amazon’s total sales are currently projected to rise 8% in fiscal 2025 and are forecasted to spike another 10% in FY26 to $759.21 billion. Annual earnings are expected to rise 12% this year and are projected to spike another 15% in FY26 to $7.14 per share.Image Source: Zacks Investment ResearchPivoting to Apple, its top line is expected to expand 3% in FY25 and is projected to increase another 5% in FY26 to $423.83 billion. Apple’s annual earnings are projected to rise 6% in FY25 and are forecasted to soar another 8% next year to $7.80 per share.Image Source: Zacks Investment Research Conclusion & Final Thoughts Amazon and Apple’s stock land a Zacks Rank #3 (Hold). To that point, their quarterly results and any guidance they can offer will need to reconfirm the attractive growth trajectories of these tech giants. Hopefully, Amazon and Apple’s outlook won’t be overly altered by higher tariffs, but there could still be better buying opportunities ahead.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks