Should You Buy Apple Stock Before Earnings on January 29? This Analyst Says ‘Yes.’

Markets are finally widening beyond the high-flying tech crowd. Since 2026 has kicked off, cyclical areas, industrials, healthcare, and small caps have outperformed, while the tech-heavy indexes have cooled. The so-called “Magnificent Seven,” including Apple (AAPL), still account for a large share of market value and are forecast to grow earnings far faster than the rest of the index. The current rotation has investors questioning whether Apple’s premium valuation is justified.  

For example, Morgan Stanley notes the S&P 500’s ($SPX) median stock P/E is 19× versus 22× for the cap-weighted index. In other words, the biggest names carry higher valuations, and recent sector strength outside tech is prompting re-evaluations.