Analyst: ‘Apple is still a very cheap stock’

“2014 was a huge year for mobile payments — Apple released its digital wallet service in October,” Nicole Goodkind reports for Yahoo Finance. “2015 might offer more. ‘I think the real discussion around Apple Pay is about how Apple and its new offering can disrupt the industry,’ says Nicole Sinclair, senior stock analyst at TheStreet.com. ‘Right now we’re not seeing a really big uptake on the consumer or business side but the potential there is strong.'”

“Sinclair doesn’t believe that the potential for Apple Pay has been priced into Apple shares. ‘I don’t think a lot of things have been priced into Apple shares,’ she says. ‘Apple is still a very cheap stock,'” Goodkind reports. “She points to the new cycle of iPhone 6 and iPhone 6 Plus, where demand remains strong, as well the Apple watch and more. ‘It’s a cheap stock relative to where the S&P is trading and relative to its growth and its innovation,’ she says.”

Read more in the full article here.

21 Comments

    1. I’m not sure what you were trying to say here. She says that AAPL is cheap compared to the S&P 500. When you plot the two against each other, you’ll see that AAPL has somewhat steeper growth curve than S&P500. The same does apply to the decline, though; during the last month, its decline was sharper than S&P500. So what she is saying, never mind that AAPL is growing faster than S&P500; it is still undervalued compared to the index.

      If she is trying to manipulate it, it would mean that she already has some stock and is hoping to pump it up, not to find a good entry point.

      1. Everyday people like you and I set the price. Apple has a perception problem in the mind of the average citizen. It goes like this: “Apple is a really great computer but Microsoft outsold them in the past and Windows computers are cheaper. Apple will be surpassed by Google just like Microsoft did. Apple can’t win.”

        Regardless of how much we love AAPL, it will be held down as long as it is perceived to be ‘more expensive’ and lacking market share. People get excited about the ‘wrong things’ all the time and this is what drives the market.

  1. AAPL will ALWAYS fall when the market is down and the ONLY reason is confirmation of lack of confidence in Tim Cook as a leader of the world’s most valuable company.

    As long as Tim is at the helm, we will never, never see AAPL reach its full potential or even reflect the true value of the company.

    Cook is weak. AAPL is stuck. Period, paragraph.

    1. I suspect you are an imp, Jay always used a capital Jay for his name.

      The message is the same as Jay’s but it’s soooo yesterday’s news. Tim is Financial Time’s Person of the year, the stock is doing nicely and all but the most moronic of the Tim Cook naysayers have all but disappeared into the shadows.

      Maybe you should try commenting on some others topics regarding Apple…oh wait you are a one post wonder.

      All right do the chicken little thing while I shake my head.

    1. Some people are saying the real reason is a coordinated bear attack perputuated by underperforming hedge funds:

      http://www.marketwatch.com/story/what-decembers-weakness-tells-us-about-2015-2014-12-16

      My gut tells me they got the ball rolling and many retail investors believed the “oil reason hype” and sold which exasperated the selling. I don’t have access to dark pool trading, but someone posted that institutions have been buying.

    1. If the stock price remains at this level of $106ish and Apple increases EPS this quarter by 40 percent then the P/E will be near 14.5. The average EPS growth for the past four quarters will be around 25 percent. So, yes, there is a huge disconnect. The stock should be currently valued at a minimum P/E of 20. This would put the stock at around $129 a share. After next earnings (about one month from now) a minimum P/E of 20 would price the stock at $146. The stock is SEVERLY undervalued!!!

      1. Oh yes indeed, you are spot on, the P/E ratio is not a good measurement where Apple is concerned and that does not bother me. Apple is way too different, they are class in a sea of mediocrity.

        While they may be behind in the dollars they should be worth they are light years ahead when it comes to their vision and integrity, and for some (like me) this value surpasses the bottom feeding scum that I think you know about.

        Thanks for the feedback, always appreciated.

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