After 26% rally in Apple's stock this year, strong earnings are already priced in, says JPMorgan

Apple CEO Tim Cook delivers the keynote address during the 2020 Apple Worldwide Developers Conference (WWDC) at Steve Jobs Theater in Cupertino, California.
Brooks Kraft/Apple Inc/Handout via Reuters

(This story is for CNBC Pro subscribers only.)

Apple is slated to post strong earnings this week but investors shouldn't expect the stock to move higher on the results, according to JPMorgan. 

The Wall Street firm — which has a buy rating on Apple — said the Tim Cook-led technology giant's stock has run up too much in the past three months for strong earnings on Thursday to move the stock higher. 

"We believe investors looking for further upside have to focus on the longer-term earnings trajectory rather than expect near-term upside, as the likelihood of an earnings beat in F3Q (Jun) as well as strong early 5G cycle volumes (driving upside to calendar 2H20 estimates) appear to be priced in," JPMorgan analyst Samik Chatterjee told clients.