“After Apple reported first-quarter results in late January, the stock fell to a 52-week low of $92,” Daniel Sparks writes for The Motley Fool. “Shares were looking particularly attractive after the sell-off. But the stock has since rebounded to above $100, trading at about $102 at the time of this writing. Is the stock still a buy at these levels?”
“Apple’s P/E ratio of 11 is notably low. A P/E ratio this small essentially assumes Apple’s EPS over the long haul may barely outpace inflation. For reference, the market has awarded the average stock in the S&P 500 with a much higher P/E ratio of 23 — more than double Apple’s,” Sparks writes. “Apple’s free cash flow yield is nearly 11%, near the highest levels it has been in the last five years — and well above other tech giants such as Microsoft and Alphabet, which have free cash flow yields of about 6% and 3%, respectively.”
Sparks writes, “There are two key reasons Apple’s EPS should be able to continue to grow at rates beyond inflation over the long haul.”
Read more in the full article here.
MacDailyNews Take: Seems like, after some water treading, the second half of the year will be better than the start of the year. (It couldn’t get much worse, could it?) Of course, when it comes to stocks and Wall Street, who knows?