6 High-Quality Tech Stocks To Buy On The Dip

In a new report, Stifel analyst Aaron Rakers takes a look at two of Apple Inc. AAPL’s biggest suppliers to get a sense of what investors can expect for the company in Q1. According to Rakers’ numbers from Hon Hai Precision (Foxconn) and Pegatron, revenue in January was down sharply for both iPhone suppliers.
 

“In terms of combined monthly sales, Hon Hai (Foxconn) + Pegatron reported January sales declined 16% m/m and 15% y/y; following the combined 18% decline in December 2015,” Rakers explains.

Related Link: 6 High-Quality Tech Stocks To Buy On The Dip

While Hon Hai’s 18 percent m/m decline in January may seeM bad, Rakers points out that the company endured 36 percent and 23 percent m/m declines in January 2014 and 2015, respectively. Pegatron’s 12 percent m/m revenue decline this January, however, is weaker than the 3.5 and 3.0 percent gains the company saw during the same month in the past two years.

Rakers reminds Apple shareholders that it is still early in Q1 to be jumping to any conclusions about the quarter, but the two suppliers’ sales numbers have historically has a high correlation to Apple’s quarterly sales numbers.