Ignore Apple fans and haters, the stock is still a bargain

“It seems that discussions on the merits of Apple Inc.’s stock often degenerate into arguments over the merits of Apple’s portable devices against those that run Google Inc.’s Android operating system,” Philip van Doorn writes for MarketWatch. “But all that has nothing to do with what Apple has accomplished, which is consistently increasing revenue from a loyal following for its products.”

“Apple’s stock was down more than 4% Wednesday, as craven investors sold off their shares following reports that the celebrity photo scandal happened because of a breach in iCloud security. The shares gave up another 1% Thursday,” van Doorn writes. “That seems to have set up a buying opportunity for traders, but even before the drop, the stock was looking like a long-term bargain.”

“The shares closed at $98.12 Thursday and trade for 14 times the consensus 2015 earnings estimate of $7.01 a share, among analysts polled by FactSet,” van Doorn writes. “That is significantly lower than the aggregate forward price-to-earnings ratio of 15.1 for the S&P 500.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Mike” for the heads up.]

3 Comments

  1. To all who have short memories…the stock fell almost 50% after the iPhone 5 release…it seemed impossible that such a thing could happen, but it did! When sentiment is so positive it’s best to wait and see what happens and wait for a better entry point. If your long the stock sell some covered calls Monday morning. That will help ease the pain if the stock gets hammered tues thru fri…

  2. A bargain? Don’t make me laugh. Andy Hargreaves told investors to sell their Apple stock. If it was a bargain he would have urged them to buy. I think they should simply call Apple undervalued instead of a bargain. I think at any point some analyst can issue a sell recommendation on Apple and BOOM start a quick collapse. Analysts take Apple very lightly for such a wealthy company. No analyst is going to come out and say, “Sell Microsoft” or “Sell Google.” Or make a statement that either of those stocks are going to fall 15% in a week. That kind of stuff is only done with Apple to panic investors.

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