That Apple rally is fueled by Piper Jaffray analyst Gene Munster, who maintained his overweight rating and assigned a $179 price target on the stock. Apple currently trades at close to $100 a share.
Munster also made the case that shares could climb 50% from current levels by the time Apple launches the iPhone 7, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
That type of move would put the stock close to $150 per share, a massive move considering the iPhone 7 launch is expected to occur in September, he added. Apple is a long-time AAP holding, a stock Cramer has said many times should be owned and not traded.
The stock has suffered from "tremendous multiple compression," Cramer said, explaining that the price-to-earnings ratio has declined -- or compressed -- because investors are deciding to pay a lower valuation for the stock.
However, as excitement grows headed into the new iPhone launch, investors have historically been willing to pay more for Apple shares, driving up the valuation and the stock price.
Munster is suggesting investors buy the stock ahead of earnings, which is contrary to many investors' outlook. Cramer said investors expect the quarter to be disappointing, and are possibly looking for guidance to come in lower-than-expected.
Too many investors are expecting that to be the case, and are therefore holding off on buying the stock. Munster, however, is going against the grain on this one, Cramer said. Apple reports earnings after the close on Tuesday.