HITS Daily Double

Apple’s stock has been soaring since its third-quarter earnings report on 8/1, leading RBC Capital to predict that it will become the first company to reach a $1 trillion market cap. To top it off, they predict it is sustainable.

The company added $56b to its market cap Tuesday, MarketWatch reported, and RBC predicts the iPhone 8 introduction in mid-September will continue the rally.

"Apple has potential to achieve a $1 trillion dollar market cap and even surpass that over the next 12 to 18 months," Amit Daryanani at RBC writes. "We see upside occurring from multiple levers."

Apple shares have gained 11% during the past month and 39% this year. It is above $160 a share, a 49% spike from where it was 52 weeks ago ($102.5).

RBC analysts see growing services revenue—that's where iTunes and Apple Music come in—helping to expand profit margins. Tighter cost control, strong stock buybacks, a recent strong gross margin performance and improving sales in mainland China are other elements adding to its financial health.

The flipside, of course, is that trade issues with China could arise and enthusiasm for the new iPhone could be less than expected.