“It is no secret that the information technology sector has been one of the favorites with investors. The sector has been leading the market higher and strong revenue and earnings growth rates from IT continue to draw attention. Investors are still hungry to make a profit in tech, but one could get a nose bleed as many stocks are reaching all time highs,” Steven Cress writes for Forbes. “Tech shares have outperformed other sectors by a large margin, adding value to an otherwise unexciting market. Investors put $4.7 billion into ETFs that track technology in May alone, part of a $10.2 billion influx for the year according to Jeff Cox of CNBC.”
“As of June 8th, Dow Jones Indices reports that IT is up 13.56% vs. the S&P 500 up 3.94% year-to-date. Many investors are becoming weary of chasing stocks after such a rally. The goal to earning a profit is to buy low and sell high,” Cress writes. “Investors often find it difficult to spot the stocks with fair prices that have great value.”
“It may be hard to believe, but Alphabet Inc., the parent company of google, has only edged slightly higher than the S&P 500 over the last 52 weeks, outperforming by 16.76% vs. 14.19% respectively… We still believe the company is a good buy in the technology sector,” Cress writes. “When an investor thinks of consumer technology, Apple is a company that immediately comes to mind… The overall CressCap rating for the stock is an A+. In our opinion, the valuation on the stock looks favorable.”
Read more in the full article here.
MacDailyNews Take: Apple shares remain grossly undervalued.