1 year agoFrom AAPLInvestors.net’s Terrence Gregory, keeper of the stats.
My take: Good way to end the week. With a long weekend ahead of us, it could have gone badly.
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It doesn’t take a genius to figure out that Apple was NOT overvalued, even at a P/E of 40! In fact, I’d argue that Apple needs to get back to a trailng P/E of at least 35 just to maintain a P/E of 30 after next quarter’s earnings – and repeat the process in the December quarter, when the availability of product will signficantly surpass last year’s holiday availability.
Thus, Apple fully deserves a P/E of 35 for at least the next 2 quarters – or a P/E of 40 right now. And a P/E of 40 requires a 33.333% increase in price over a P/E of 30.
I counted 14 times in the last six months alone, when a down spike (all V’s no U’s) was a “point of no return”, i.e. the next low was higher.
This confirms Joseph’s thesis that weaker hands have left the table.
The ONLY thing I track is the intraday low. Everything else is higher.
I predicted an intraday high of $155 on Wednesday, but missed it by 26 cents.
Yes, it could have gone badly with trepidation surrounding today’s August job numbers coming in short of expectation. I never worried as I personally see Apple as a stay-at-home AND a coming-out-play for investors. Whether the market anxiety is over a global growth slowdown in the economy due to a surge in the Delta variant or over a labor supply constraint in the economy matters little for Apple, a consumer staple company. Apple showed us last year how to navigate those troubled waters. Also, Apple’s unique, innovative and premium products are in demand. It is for this reason why I believe the job numbers today in the job’s report has more to do with a labor supply constraint where employers just can’t find the needed employees to fill job openings. I live in one of the poorest economic states and yet, there is no shortage of help wanted signs and job opening announcements, all at higher wages than I ever have seen paid in various businesses. So, I am in the camp that the economy is growing, but there isn’t a sufficient supply of workers to fill jobs, or possibly, applying to fill those jobs.
I am very optimistic going forward about the economy and about Apple’s continued stock price growth. Conservatively, I see us heading to $175 by the Q1 earnings call late January, 2022 and $200 by the Q4 earnings call late October, 2022. My bullish projections call for $175 by 12/31/2021 and $200 by 06/30/2022. Apple is firing on all cylinders.