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Apple Inc. (AAPL), headquartered in Cupertino, California, is a name that is globally recognizable due to its immensely popular devices, such as iPhones, iPads, Apple Watch, AirPods, Mac, and Apple Vision Pro. Valued at $2.95 trillion by market cap, it is apart from all publicly traded companies worth more than a trillion dollars but Microsoft (MSFT) in the S&P 500 Index ($SPX).
Companies worth $200 billion or more are generally described as “mega cap stocks,” and AAPL definitely fits that description. The company has been at the forefront of innovation in hardware, software, and services and has played a vital role in revolutionizing personal technology through its cutting-edge devices.
However, the tech titan has fallen 2.8% from its 52-week high of $199.62, which it hit on Dec. 14, 2023. Shares of AAPL are up 8% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 3.4% gains over the same time frame.
Longer term, AAPL shares rose 7.2% over the past year, and in 2024, the stock is up 0.8%. By contrast, the NASX is up 12.1% on a YTD basis and 27.1% over the past 52 weeks.
To confirm the bullish price trend, AAPL has been trading above both its 50-day and 200-day moving averages since early May.
On May 3, AAPL shares surged by 8.1% during early trading after the company announced the largest stock buyback in U.S. history worth $110 billion and provided an optimistic revenue forecast for the current quarter. The company reported its Q2 results on May 2. Revenue came in at $90.75 billion, surpassing Wall Street expectations of $89.99 billion. Its EPS of $1.53 beat analyst estimates of $1.51.
AAPL’s solid run over the past three months can also be attributed to the 52% rise in iPhone sales in China in April and excitement around its artificial intelligence (AI) plans, which many investors believe are set to be revealed during AAPL’s Worldwide Developer Conference (WWDC) scheduled on Jun. 10.
To emphasize the stock’s underperformance, top rival Microsoft has outperformed AAPL. MSFT stock has gained 23.3% in the past 52 weeks and is up 10% on a YTD basis.
Despite its recent underperformance compared to NASX, analysts are optimistic about AAPL’s prospects. The stock has a consensus rating of “Moderate Buy” from the 30 analysts in coverage, and the mean price target of $205.96 is a premium of 6.1% to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
