Please ensure Javascript is enabled for purposes of website accessibility

3 Odd Things About Apple Stock's Unlikely Winning Streak

By Rick Munarriz – Jul 19, 2017 at 9:27AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The consumer tech giant's closed higher for eight straight trading days, but it's not likely to last given the rally's unusual circumstances.

Apple (AAPL 0.19%) shares are rolling again. The world's most valuable consumer tech company has closed higher for eight consecutive trading days, a run that Investor's Business Daily points out is Apple's longest winning streak in nearly three years. 

You have to go back 35 months to find the last time Apple has pieced together a longer run without a down day, and that nine-day streak includes a day when the stock closed unchanged -- making the current string even more remarkable. It's easy to get excited over consistent upticks, but let's frame this event in its proper perspective. Let's go over a few things that seem a bit unusual about the staying power of this month's winning streak.

Apple Classes at Apple Store locations.

Image source: Apple.

1. The overall gains haven't amounted to much 

Investors haven't exactly made a killing during this eight-day run. Apple stock has moved 5.1% higher through the streak, so we're talking about a string of bunt singles. The stock has only posted a daily gain north of 1% just once in that span.

One can argue that the mere 5.1% move through eight winning days isn't a surprise. It's usually sharp moves higher that attract profit taking. The nine-day streak from three summers ago resulted in just a 5.8% gain. It's the quiet rallies that last, but it's still a point worth making.

2. Apple's been climbing a wall of worry

The market's been inching higher during Apple's run. The S&P 500 has risen in six of those eight days, climbing 2.1% along the way. The market's been conducive -- it rose in seven of the nine days during Apple's 2014 streak -- but all of the Apple headlines over the past few haven't been positive. 

Chatter continues to build about delays for the high-end OLED model of the upcoming iPhone 8. Even some bullish analysts are conceding that the device won't launch until October, after its historical rollout month of September. Some sources are pointing to a November or December launch, and initial availability is expected to be scarce.

Another potential pothole is a report that the wireless charger Apple is expected to introduce with the iPhone 8 will ship separately and may be late. There's also a story making the rounds about software issues with the new smartphone. With analysts scaling back targets for the current fiscal year, it's a real surprise that the bears haven't been able to swipe a day from the bulls over the past two weeks. 

3. Fresh financials are just around the corner

Apple is now less than two weeks away from announcing its fiscal third-quarter results. Sustainable rallies after earnings -- like the mid-August 2014 run -- make sense. All of the cards are already on the table. Consistent gains in the days leading up to the report is a harder feat.

This eight-day winning streak may make for scintillating headlines, but it's more coincidental than fundamental. Apple has two weeks to justify its recent gains, and that's when the real streak that matters will start.

Rick Munarriz owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.

Stocks Mentioned

Apple Stock Quote
$148.31 (0.19%) $0.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.