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Home / Business / Apple stocks are cheap, no matter how you cut them, the market watcher says

Apple stocks are cheap, no matter how you cut them, the market watcher says



Investors fall for Apple again.

5 years.

The stock has recovered from this low by about 26 percent. Although it is still trading in a bear market, which accounts for about 23 percent of the all-time high in October.

Two market observers agree with Mohan that Apple is a long term positive bet and the current pullback creates an attractive entry point to buy the stock.

Gina Sancehz of Chantico Global Advisors likes Apple because of its rating, which it believes is cheap compared to its growth path.

"This company has continued to cut its profits, I think if you look at it in the long term, I would consider it a technology value-added," she said Monday about CNBC's trading nation. "It's very robust and I think that's what you need now to get the year started."

Many Apple bears have called the slowdown in iPhone sales as a reason to lose the stock. On the other hand, Apple bulls have pointed to the growth potential for the services business as a reason to own the stock long term. Sanchez believes that the stock looks good in every way.

"I think there's a lot of talk that Apple will not really focus anymore on iPhone sales, but will focus on services. Even service stocks are trading at a higher multiplier than Apple currently trades, so It does not matter how you look at the Apple stock: it's cheap or cheap compared to the current mix if it's still focused on wearables and services. Ecosystem: Either way, it's cheap, "she said.

According to FactSet, Apple is trading at 14.8x the expected 12-month earnings.

Oppenheimer's Ari Wald argues that it would take some time for Apple to return to its former high, but in the long run it goes back in that direction. According to the economic slowdown, investors will choose high-growth companies, especially in the technology sector.

"Long-term positive for us are the top-down tailwinds of our widely used and relatively strong technology sector. We continue to believe that these high-growth companies will receive a premium in a low-growth world," he told Trading Nation.

For this very reason, he does not buy the stock as an important technical indicator. Apple's moving average for 200 days is currently falling sideways, which means the stock could be short-range in the short term.

The key level that Forest observes is $ 185. If the stock breaks through up there – which was the case last November – he believes one rally could be the next. That's 3.4 percent more than the closing price on Monday of $ 178.90.


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