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With a market cap of $3.5 trillion, Cupertino, California-based Apple Inc. (AAPL) is a leader in the technology sector, designing and marketing a range of innovative consumer electronics, software, and services. The company’s offerings include diverse flagship products and a robust services segment that spans digital content, payments, and cloud solutions.
Shares of the mega-cap company have slightly underperformed the broader market over the past 52 weeks. AAPL has risen 38.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 41.7%. In 2024, AAPL stock surged 21.4%, compared to SPX's 22.3% YTD gain.
Narrowing the focus, Apple stock has also lagged behind the Technology Select Sector SPDR Fund's (XLK) 44.8% rise over the past 52 weeks. But, the stock has marginally outpaced XLK's 21.2% increase on a YTD basis.
Apple has underperformed over the past year due to weaker demand in China, exacerbated by government restrictions on iPhone use and a general trend of consumers delaying device upgrades. Additionally, Apple's delayed entry into the AI space and the challenges with its Vision Pro headset and EV plans have raised concerns. Moreover, the stock fell 2.2% on Oct. 23 after analyst Ming-Chi Kuo reported a significant reduction in iPhone 16 orders, with a cut of about 10 million units expected from Q4 2024 to the first half of 2025, indicating weaker-than-anticipated demand.
For the current fiscal year which ended in September, analysts expect AAPL's EPS to grow 7.7% year-over-year to $6.60 per share. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 32 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings, four “Moderate Buys,” eight “Holds,” and two “Strong Sells.”
This configuration is slightly less bullish than three months ago, with 19 “Strong Buy” ratings on the stock.
On Oct. 29, Piper Sandler reiterated a “Neutral“ rating and $225 price target for Apple, citing low upgrade rates and a trend of consumers holding onto older iPhones.
The mean price target of $241.67 represents a premium of just 3.4% to AAPL's current levels. The Street-high price target of $300, implies a potential upside of 28.4% from the current price levels.
On the date of publication, Sohini Mondal 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.
