Apple Shares: A Potential Entry Point Ahead of Earnings?

Apple investors have endured a challenging period, with shares declining approximately 9% over the past four weeks. As the stock consolidates near multi-week lows, a chorus of Wall Street analysts is identifying a potential buying opportunity. The catalyst for this optimism is the company's upcoming earnings report on January 29, covering a period that Apple's own management has hinted could be "record-breaking." The central debate appears to have shifted from whether the company will beat expectations to the magnitude of the potential outperformance.

The broader analyst community, comprising roughly 30 market experts, anticipates revenue of approximately $138.3 billion for the quarter, representing year-over-year growth of 11.3%. Earnings per share (EPS) forecasts cluster between $2.65 and $2.67. This quarter is particularly significant as it encapsulates the crucial holiday shopping season and marks the first full sales period for the iPhone 17.

Leading the bullish charge is Dan Ives from Wedbush Securities, who maintains a Street-high price target of $350 per share. Ives, renowned for his positive stance on the tech giant, has characterized 2026 as a potentially "monumental year" for Apple, driven by a significant acceleration in its artificial intelligence strategy.

Further optimism comes from Evercore ISI, which recently added Apple to its "Tactical Outperform" list. Analyst Amit Daryanani sustains a $330 price target, projecting a 17% surge in iPhone revenue fueled by consumer preference for higher-priced iPhone 17 Pro models. His estimates call for quarterly revenue of $140.5 billion and EPS of $2.71, both exceeding consensus figures.

Should investors sell immediately? Or is it worth buying Apple?

Goldman Sachs Highlights iPhone and Services Strength

In a recent note dated January 20, Goldman Sachs analyst Michael Ng reaffirmed a "Buy" rating with a $320 price objective. His analysis projects iPhone revenue growth of 13% for Q1 2026. This increase is expected to be driven by a 5% rise in global unit sales and a striking 26% surge in the Chinese market, where Apple has reportedly reclaimed the top spot in smartphone sales. Additionally, Ng forecasts the high-margin Services segment—including iCloud+, AppleCare+, and advertising—to expand by 14%.

Noteworthy Risks and a Cautious Voice

Despite the prevailing optimism, some analysts point to tangible headwinds. Citi analyst Atif Malik, while maintaining a "Buy" recommendation, recently trimmed his price target from $330 to $315. His concerns center on two key cost pressures: a projected 50% increase in DRAM memory costs for fiscal 2026, which could compress margins, and approximately $1.4 billion in tariff expenses to be recognized in the current quarter. The extent to which these factors impact the gross margin will be a key focus during the earnings release.

Key Focus Areas for the January 29 Report

The financial results are scheduled for release after the U.S. market closes, followed by a conference call with CEO Tim Cook and CFO Kevan Parekh at 11:00 PM Central European Time. Beyond the headline revenue and profit numbers, investors will scrutinize the regional breakdown, with particular attention on performance in China. The growth trajectory of the Services business and, critically, management's guidance for the current quarter will also be paramount, especially after Apple's recent cautious tone regarding tariffs and supply chain risks.

Current analyst ratings reflect a cautiously optimistic stance: of 42 covering analysts, 24 recommend "Buy" or "Strong Buy," while 16 advise "Hold." The median price target stands at $289, implying a potential 17% upside from recent trading levels.