“In the past three downturns, says analyst Toni Sacconaghi, Apple’s share price bottomed only after sell-side EPS estimates had bottomed,” Philip Elmer-DeWitt reports for Apple 3.0. “From a note to clients that landed on my desktop Wednesday:”
Before this most recent swoon, Apple’s stock had materially underperformed the market only three times within the last decade: (1) the iPhone 5 cycle from late 2012 to 2013; (2) the iPhone 6S cycle in early 2016; and (3) the first half of the iPhone X cycle…
Apple’s stock price has historically bottomed only once sell-side EPS estimates have bottomed… Sell-side estimates have only been revised downwards by -0.8% so far, and history suggests that the stock is unlikely to inflect until estimates stop coming down.
Read more in the full article here.
MacDailyNews Take: Watch the lemmings. They’re predictable.
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