It seems the sentiment has turned. Investors that were on the sidelines will start piling in.
The PE should AT LEAST get back to average SP500, which i believe is 16 or 17 right now. That's another 15-20% from here. However, it should be BETTER than average SP500, which leaves large upside left in this stock for now.
The most important factor I think is that the "big" boys (mutual funds, pension funds, etc) were very light weighted in AAPL as reported. It was fine when AAPL was done last year but now it does not look good and they have to buy more shares. Also, AAPL is going to be added to DOW and that will further force those big boys to buy the shares. Of course the fundmentals are the bottom line and that is why many small investors who saw the value and bought or are buying now. AAPL's PE is a little misleading - it has $150 billion cash and see where the PE will be if you subtract that cash pile from its market cap!! The real PE is about 8.5 and that is about half of the S&P.
Couldnt agree more. Multiple expansion is on its way. I do think this is going to be a $700 stock by the end of the year. By the end of 2015 I do not think the stock will be below $1000 pre split. After the buy back is done at the end of 2015, I do not think Apple will impliment another buy back because the stock will be fairly valued at thta time. At that time there will be approx 20% less stock in circulation. The company at the beginning of 2016 I believe will boost its dividend by a lot making this stock loved by both growth and value investors. I have never seen such a no brainer stock in all my years. Its nice to have Icahn on our side as well. People may hate him but he does indeed know how to unlock value for shareholders