Apple stock is ‘poor’ risk-reward heading into the Q3 report: Krinsky

Apple Inc (NASDAQ: AAPL) is up roughly 20% from its recent low heading into the Q3 financial report. Still, the Chief Market Technician at BTIG says risk-reward is quite “poor” here.

Jonathan Krinsky is dovish on Apple stock

Broadly speaking, Apple looks like a good pick for a looming recession considering its fortress of a balance sheet. But from an “absolute price” perspective, Jonathan Krinsky said on CNBC’s “Halftime Report”, the stock is not all that attractive.

The iPhone maker is scheduled to report its financial results for the third quarter on July 28^th. Apple stock currently trades at a trailing 12-month PE multiple of 25.

Apple is trading near a strong resistance

Krinsky is dovish on the S&P 500 at large and expects the benchmark index to make a new low somewhere in August. For Apple, in specific, a strong resistance just above its current stock price puts him off.

Apple is expected to report $1.16 of per-share earnings on $82 billion in revenue this quarter. The juggernaut has already warned of an up to $8.0 billion hit due to the resurgence of COVID-19 in China and supply constraints at large.