Shares of Apple Inc. (NASDAQ: AAPL) are down nearly 15% from their all-time high, currently trading around $245. The drop is due to selling pressure and rising geopolitical tensions affecting equities. Apple’s technical indicators are at extremely oversold levels, raising questions about the extent of the selling pressure, especially with earnings approaching next week.

Apple’s upcoming earnings report adds intrigue to the situation, as the company has a history of outperforming analyst expectations. Despite the aggressive sell-off, Apple’s fundamentals remain strong, with robust gross margins, steady cash flow, and a shareholder-friendly capital return strategy. The company’s track record of consistently beating expectations sets it apart from peers.

Analyst conviction in Apple is growing as Evercore and Wedbush issue bullish updates ahead of earnings. Evercore’s price target of $330 implies 35% upside potential, while Wedbush’s target is even higher at $350. Analysts expect strong iPhone sales, supported by higher-end models and growing services revenue. A modest beat on revenue or earnings could shift sentiment in favor of Apple.

While Apple’s risk remains elevated, the current setup presents an attractive risk/reward opportunity. The stock is the most oversold it has been in nearly two decades, and with solid fundamentals and analyst support, the potential for a rebound exists. Earnings will be crucial, but a disappointment could lead to further weakness, especially amid geopolitical uncertainties.

Read more at Nasdaq: Why Apple’s Sell-Off May Be Overdone Right Before Earnings