The Zacks Analyst Blog Highlights Apple, Affirm, Compass and CyberArk

For Immediate ReleaseChicago, IL – May 1, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, Affirm AFRM, Compass COMP and CyberArk Software CYBR.Here are highlights from Wednesday’s Analyst Blog:Will Strong Services Offset Weak iPhone Sales for AAPL's Q2 Earnings?Apple’s second-quarter fiscal 2025 results, to be reported on May 1, are expected to reflect stiff competition for iPhone in China. However, will continued strong growth in the Services business offset this headwind?iPhone sales are likely to have suffered from stiff competition in China from Chinese vendors, including Huawei and Xiaomi. A delay in the launch of Apple Intelligence to a major part of Apple’s installed base, including Mainland China, has been a concern.Although Apple’s business primarily revolves around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. For the Services segment, Apple expects a low double-digit growth rate on a year-over-year basis in the to-be-reported quarter.The Zacks Consensus Estimate for fiscal second-quarter iPhone net sales is pegged at $46.45 billion, suggesting 1.1% year-over-year growth. The consensus mark for Services is currently pegged at $26.76 billion, suggesting 12.1% growth on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Apple Inc. revenue-ttm | Apple Inc. QuoteClick here to learn how Apple’s overall fiscal second-quarter earnings results are likely to be.Services Growth to Ride on Apple TV+, Strong Install BaseApple’s Services business is expected to benefit from the growing install base of active devices has been a key catalyst. Apple had more than 1 billion paid subscribers across its Services portfolio at the end of the fiscal first quarter. Paid subscriptions grew double-digits, a trend expected to have continued in the to-be-reported quarter.Severance, along with Ted Lasso, Slow Horses and Silo, are a few of the Apple TV+ shows that have gained fame in recent years. The company leverages Apple TV+, along with Apple Music, Apple Arcade, and Apple Pay, to attract users to its Services portfolio, which currently has more than 1 billion paid subscribers, more than double what Apple had four years ago.Apple to Benefit from Y/Y Growth in Mac SalesThe PC segment climbed up in the first quarter of calendar 2025. Per IDC, Apple had a market share of 8.7%, up 70 basis points (bps) on a year-over-year basis. Shipment grew 14.1% year over year to hit 5.5 million. According to Gartner, Mac shares inched up 20 bps while shipments increased 7% year over year.Apple’s shipment growth rate is the largest in IDC’s vendor list, followed by ASUS and Lenovo’s growth of 11.7% and 4.8%, respectively. According to Gartner’s list, ASUS was placed at the #1 spot with shipment growth of 9.1%, trailed by Lenovo’s 9.6% growth and Apple’s 7% growth.Apple’s Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera. Apple also announced the new Mac Studio featuring M4 Max and the new M3 Ultra chip. The new chip is the most powerful created by Apple and features double Neural Engine cores, Thunderbolt 5 with more than two times the bandwidth per port for faster connectivity and robust expansion.The Zacks Consensus Estimate for fiscal second-quarter Mac net sales is pegged at $7.79 billion, suggesting 4.6% year-over-year growth.Apple’s iPad Sales to Increase Y/YiPad accounted for roughly 6.5% of fiscal first-quarter net sales. Strong demand for iPad Pro and the launch of 11-inch and 13-inch iPad Air benefited sales, which increased 15.2% year over year to $8.09 billion. The momentum is expected to have continued in the to-be-reported quarter.In March, Apple introduced the faster, more powerful iPad Air with the M3 chip and built for Apple Intelligence. iPad Air with M3 is nearly 2X faster compared with iPad Air with M1, and up to 3.5X faster than iPad Air with A14 Bionic.The Zacks Consensus Estimate for fiscal second-quarter iPad net sales is pegged at $5.92 billion, suggesting 6.5% year-over-year growth.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.Apple currently has an Earnings ESP of -0.85% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Affirm presently has an Earnings ESP of +63.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Affirm shares have declined 17.1% year to date. Affirm is set to report its third-quarter fiscal 2025 results on May 8.Compass has an Earnings ESP of +16.67% and a Zacks Rank of 2 at present.Compass shares have gained 30.4% year to date. Compass is set to report its first-quarter 2025 results on May 8.CyberArk Software currently has an Earnings ESP of +3.90% and a Zacks Rank #2.CyberArk Software shares have climbed 5.9% year to date. CyberArk Software is set to report its first-quarter 2025 results on May 13.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Apple Inc. (AAPL): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Compass, Inc. (COMP): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): 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