The Zacks Analyst Blog Highlights Apple
For Immediate Release
Chicago, IL – July 5, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc.'s AAPL.
Here are highlights from Monday’s Analyst Blog:
Apple Hits $3T in Market Cap: Can It Reach $4T by 2024?
Apple Inc.'s market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplish this feat twice. The stock has been on a terrific run this year, having gained about 49%. Though the stock may witness some rough trading in the near term due to rising rate worries, its long-term prospects look bullish.
According to Fairlead Strategies, Apple's latest breakout confirms a likely upside in the coming years, as quoted on Business Insider. Let's find out the factors that can lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 31% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 31% increase from the current stock price. Achieving this target will push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, the founder of Fairlead Strategies, detects the resumption of the uptrend that "preceded the 2021-2022 trading range." This suggests continued positive momentum for Apple's stock in the short term. The absence of counter-trend signals further supports the rally.
Can Apple Touch $254 by 2024-End?
Per Stockton, the technical price objective of $254 per share can be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's success has not been fueled primarily by artificial intelligence (AI), unlike some of its peers. Instead, AAPL's strength lies in its proficient supply-chain management. The company's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, produced excitement among users and investors. Priced at $3,499, the headset set to be released early next year, is contributing to the positive sentiment surrounding the Apple stock.
Apple: A Safe Haven Amid Fed & Inflation Worries?
Apple has been an unwavering investment option, even during uncertain economic times. Angelo Zino, CFRA vice president and technology equity analyst, highlights Apple as a safe haven for investors, as quoted on Yahoo.
The company's ability to circumnavigate various economic conditions and deliver consistent returns positions it as a long-term investment rather than a short-term trade. Apple usually targets high-end customers, which helps the company navigate economic slowdowns. For example, the Apple Vision Pro headset targets a premium market segment, safeguarding it from inflation and recession worries.
Will Back-to-School Season Create Another Milestone for Apple?
While Mac and iPad revenues in the last-reporting quarter were lower than the previous year, iPhone sales experienced a significant year-over-year increase. Also, the introduction of the 15-inch MacBook Air variant and the back-to-school shopping season can boost Mac sales.
Opportunities in the India Market
Apple's entry into the India market signifies its determination to expand its presence in the world's most crowded nation. The company plans to shift some of its manufacturing operations to India, diversifying its production base and reducing its dependence on China. This move can mitigate geopolitical challenges and strengthen AAPL's position.
Upbeat Zacks Indicators
The Zacks Consensus Estimate for Apple's earnings for the June-end quarter is pegged at $1.18 per share. The Most Accurate Estimate is pinned at $1.22 per share, leading to an Earnings ESP of +3.39%. This is a positive sign for the stock. The stock has a Value score of B.
Any Wall of Worry?
Though the success of the Vision Pro headset can result in growth opportunities, replicating the same level of success as the iPhone will be difficult. The brokerage firm UBS cautioned investors about slowing iPhone sales, as quoted on MarketWatch. Citing data from the market research firm Counterpoint, UBS' analyst Vogt reported that May's sell-through was 14.5 million units, the lowest since August.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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