Bank of America stated that the recent decline in Apple’s stock price presents an “enhanced buying opportunity,” noting that the stock’s forward price-to-earnings ratio has fallen below 25x, offering a compelling risk/reward profile at this reduced level.
The declines have been driven by mounting geopolitical concerns over tariffs and delays in AI-related product features, particularly around Siri upgrades.
Apple shares are down 25.5% year-to-date… “In our view, the pullback presents a particularly enhanced buying opportunity for investors to own a high-quality name,” analysts wrote reiterating its Buy rating on “APPL’s stable cash flows, earnings resiliency and potential beneficiary of AI use on edge devices”.
Apple shares are trading down another [5.27%] in Tuesday trading.
According to BofA’s analysis, Apple’s stock has historically delivered positive returns in the months following dips below 25x forward P/E… Apple remains well-positioned to benefit from long-term tailwinds in edge-based AI computing, and that investors should “look through near-term volatility” to capitalize on the stock’s compressed valuation.
MacDailyNews Take: As Peter Lynch said so eloquently, “The only problem with market timing is getting the timing right.”
Sub-$170 AAPL seems like an absolute gift to us, but, as always, do your own due diligence. Trying to hit it at its absolute bottom is like trying to win the lottery while being stuck by lightning.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
unfortunately, there’s nothing compelling about buying any stock as long as a deranged king is in charge of the economy.
Biden is already gone. In Depends somewhere senile and tarded out because you fool we’re kissing his ass while the country was swirling down the toilet.