“While Apple’s (AAPL) revenue and earnings have absolutely skyrocketed over the past few quarters — it reported 92% growth in its recently ended fiscal Q2 alone –its stock price has barely advanced since reaching $320 in late October,” Andy Zaky writes for Seeking Alpha. “Yesterday, the stock closed at $346.57, or 8.6% higher than where it was trading at over 7 months ago.”
“The NASDAQ-100 (QQQ), by contrast, has rallied 18.22% over the same time period. The stock hasn’t even been able to outperform the NASDAQ-100 despite trading at the cheapest relative valuation of the group and posting almost the highest net income growth rate surpassed by only a handful of stocks with lofty valuations,” Zaky writes. “Even the broader S&P 500 (SPY) has outperformed Apple since October, posting 16.2% gains in the period.”
Zaky writes, “Apple’s stock price has simply been unable to keep pace with its explosive 90% growth in earnings. As a result, Apple’s P/E ratio has gradually fallen over the past year to the point that the stock is now trading at the lowest valuation we’ve seen since the depths of the financial crisis — the stock currently trades at a mere 16.5 trailing P/E ratio.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Andy Zaky” for the heads up.]