Don't Want To Trade Apple On Earnings? Try These Peer Plays

Every quarter, the earnings report from the world’s largest public company, Apple Inc. AAPL, is a major event on Wall Street. This quarter is no exception. Apple is set to release its earnings report after the market close on Tuesday.

Unfortunately, the droves of traders that trade Apple’s earnings typically create a lot of noise in Apple’s share price in the days after it reports. If you think you see a big Apple beat or miss coming, consider trading one or more of Apple’s suppliers instead.

Analog Devices, Inc. ADI supplies capacitive touch screen controllers for both the iPhone and the Apple Watch.

Micron Technology, Inc. MU produces memory modules such as DRAM, LPDDR3 and LPDDR2 for Apple gadgets.

Texas Instruments Incorporated TXN supplies touchscreen controllers, power management chips and control devices for iPhones and iPads.

Related Link: Apple's Q3 Report: The Current Sell-Side Sentiment

For what it’s worth, all three of these suppliers are trading higher by 2-6 percent Tuesday, even though Apple’s stock is down slightly on the day.

Outside of Apple’s suppliers, other names trade closely in-line with Apple’s stock as well. Glu Mobile Inc. GLU, for example, makes iOS gaming apps and gets roughly two-thirds of its revenue from Apple.

Of course, traders could also see Apple’s weakness as strength for its competitors (or vice versa). As of Q1, Alphabet Inc GOOGL’s Android operating system was the global market share leader among smartphone users.

Disclosure: the author holds no position in the stocks mentioned.

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