“At its recent price of $108, Apple stock trades at 11.5 times earnings, which is lower than 17.6 times for the S&P 500 index, according to Barron’s. However, the discount is even bigger than these numbers indicate, since Apple uses GAAP numbers. With GAAP numbers, the S&P 500 trades above 23 times earnings,” Graf reports. “Apple’s ‘pessimistic price’ reflects slowing iPhone growth, though the problem of soft demand has been exacerbated by a weaker dollar, Barron’s adds.”
“Additionally, the iPhone SE will likely be a very big hit in China and among people who like its smaller form, TheStreet‘s Jim Cramer pointed out on CNBC’s Squawk on the Street this morning,” Graf reports. “‘Tim Cook continues to be underestimated, but you know what, underestimate him at your own risk,’ Cramer said.”
Read more in the full article here.
MacDailyNews Take: Almost two years ago to the day:
Those who underestimate Tim Cook are in for a rude awakening. – MacDailyNews, April 9, 2014