Apple Inc (NASDAQ:AAPL) has been regarded as the most defensive stock in times of high volatility. Whereas the stock looked strong in the wake of global supply chain challenges, cracks are emerging from Covid-19 curbs in China.
The company has been facing shipment delays amid declining demand for iPhones. The weaknesses have not gone unnoticed, as the stock has been declining since touching a high of $179 at the end of March.
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On the other hand, Johnson & Johnson (NYSE:JNJ) had enjoyed a stellar rise since February 24, 2022, when it touched a bottom of $155. The stock is trading at $179 in a short-term retracement after topping $184. The gains in J&J happen even as investors run to healthcare, utilities, and staples in the so-called defensive sectors.
Investors are worried that a tighter economy and geopolitical uncertainty would dwindle returns in other sectors. J&J is benefiting from the shift in investor attention.
Technical comparison of Apple and J&J
Technically, Apple stock broke below the $169 support. Investors should expect the stock to continue declining as the supply chain woes continue. The stock could settle at $157.
Different from Apple, J&J is on an uptrend. The stock is retreating after hitting a high of above $184. The company reports Q1 2022 earnings on April 19. A robust earnings report could see the stock maintain the uptrend after settling at the $179 support.
Concluding thoughts
Apple and J&J are strong stocks in the wake of market uncertainty. However, Apple is facing supply chain issues, and investors should wait to buy the stock at $157. J&J is currently robust as investors turn to defensive names.
Investors should consider buying at the $179 support if the Q1 2022 results come strong. The stock could also settle at $174, offering better buying opportunities.
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