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Top analyst explains how to profitably trade Apple, why Buffett owns it

Sanford C. Bernstein technology analyst Toni Sacconaghi shared his views on Apple in an interview Tuesday on CNBC's "Halftime Report."

On how to trade Apple: "Our analysis suggests that the stock is highly anticipatory of new product announcements," Sacconaghi said. "We found that the stock appreciates [and] outperforms the market by an average of 1,600 basis points in the six months prior to an iPhone product launch."

On why Warren Buffett owns the iPhone maker: "He loves great consumer franchises, which obviously Apple has. He loves recurring revenue. He likes disciplined capital deployment," Sacconaghi said. "Apple fits the bill on all of those things."

Sacconaghi's picks have a 21.5 percent one-year average return with a 70 percent success rate, according to analyst ranking service TipRanks, placing him in the top 3 percent of all Wall Street analysts covering any industry.

He also discusses:

  • Apple shareholder meeting
  • Cash repatriation
  • Replacement cycle risk

To watch the broadcast interview in its entirety, you must be a CNBC PRO subscriber.