After languishing amid the tech-led market sell-off, Apple, Inc. (NASDAQ:AAPL) shares have seen a nice recovery in recent sessions.
Apple Back In The Green: Apple stock bottomed at $150.10 on March 14 before ending the session at $150.62. Since then, the stock has been higher for 11 straight sessions, the longest winning streak in about nine years.
Thanks to the extended rally witnessed by the stock, it has turned positive for the year-to-date period.
Apple stock ended 2021 with a gain of 34.6% and peaked at $182.94 on Jan. 4, 2022. It traced a down move until late January before staging a recovery, with the quarterly earnings report serving as the catalyst. Unable to break through resistance around $176, the stock faltered yet again and tumbled to the March 14 low.
The stock is now up about 4.2% year-to-date.
Related Link: Why Apple Has 'Little To Lose, A Lot To Gain' By Expanding Its Services To Android Devices
What's Driving The Rally? Apple typically has a lean patch in the first half of a calendar year, primarily because it is coming off a seasonally strong holiday quarter. Also, the tech giant's key hardware launch events are back-end loaded.
This time around, the word on the Street is that the company has staggered, multiple launch events. Earlier this month, Apple hosted its "Peek Performance" event, where it unveiled the next iteration of its 5G-enabled iPhone SE budget phone.
Apple also announced a new in-house, high-performance chip, the M1 Ultra, and a new Mac desktop and display.
It is also rumored that Apple will announce a hardware subscription option, which according to Morgan Stanley analyst Katy Huberty will drive meaningful upside to the stock price.
Also supporting the Apple rally is an alleviation in the geopolitical turbulence seen around the Russia-Ukraine war. This has increased appetites for risky investment bets, including equities.
Is the worst phase over for Apple? The average analyst price target for Apple is $193.36, according to data compiled by TipRanks. This suggests the stock has further room to run. The consensus price target implies roughly 10% upside.
AAPL Price Action: Apple shares gained 1.91% Tuesday, closing at $178.96, according to Benzinga Pro.
