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Wall Street Firm Says Apple Remains One of the World's Most Unappreciated Stocks

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Wall Street brokerage firm Drexel Hamilton today informed its clients it continues to believe Apple is "one of the most underappreciated stocks in the world," according to a research note seen by MacRumors.

Apple analyst Brian White retained his "buy" rating for AAPL and $185 price target. Apple shares are currently trading at around $114, their highest level since late October, after rising over 1% in intraday trading.

White said Apple continues to face a never-ending waterfall of "gloom and doom" media reports, just months after launching the new MacBook Pro and iPhone 7.

Nevertheless, he looks forward to 2017, when he believes Apple will have a "more durable iPhone cycle" that can return the company to more consistent sales growth after three consecutive quarterly declines.
Given this weak stock performance over the past couple of years, and our expectation of a more durable iPhone cycle that can return the company to more consistent sales growth, we look forward to 2017. In the near-term, we look for Tim Cook to make Apple grow again in [the first quarter of the 2017 fiscal year] on the back of the iPhone 7 and a happy holiday season, while we look forward increased cash distribution in 2017 [and] the launch of iPhone 8 and more color on future innovations.
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Drexel Hamilton said Apple's stock has risen by 7% this year, trailing the 10% overall increase in stocks among the S&P 500 Index.

Article Link: Wall Street Firm Says Apple Remains One of the World's Most Unappreciated Stocks
 
Article Link
https://www.macrumors.com/2016/12/09/aapl-one-of-worlds-most-underappreciated-stocks/
djcerla

djcerla

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BootsWalking said:
AAPL may be undervalued when compared to the extreme overvaluation of other companies in the S&P but on a rational basis AAPL is fairly valued for a company with negative earnings growth and no current prospects for returning to growth.
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Nope.

Apple just projected a return to growth in the current quarter, most likely their record Q1; they didn't want otherwise, so the guidance will be confirmed in the earnings call.

The firm is ridicolously undervalued, making the current share price an excellent entry point.
 
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2457282

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Apple's P/E is under 14 right now, which does suggest some undervalue. But I am not a fan of companies being in the 20's either (like google that is almost at 29 - that is overvalued to me).
 
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KidAKidB

KidAKidB

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djcerla said:
Nope.

Apple just projected a return to growth in the current quarter, most likely their record Q1; they didn't want otherwise, so the guidance will be confirmed in the earnings call.

The firm is ridicolously undervalued, making the current share price an excellent entry point.
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lolz

They are hardly undervalued. And Q1 is not going to be record breaking. Maybe after the 2017 iPhone comes out, but not this year.
 
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Zirel

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BootsWalking said:
AAPL may be undervalued when compared to the extreme overvaluation of other companies in the S&P but on a rational basis AAPL is fairly valued for a company with negative earnings growth and no current prospects for returning to growth.
Click to expand...

You talk like Apple is Google, Microsoft, Amazon and others who only have failures to show.
[doublepost=1481301923][/doublepost]
djcerla said:
Nope.

Apple just projected a return to growth in the current quarter, most likely their record Q1; they didn't want otherwise, so the guidance will be confirmed in the earnings call.

The firm is ridicolously undervalued, making the current share price an excellent entry point.
Click to expand...

They projected that (and they never overshoot) before the Note 7 exploding batteries fiasco...
 
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v0lume4

v0lume4

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I really can't see it. Apple is a behemoth and incredibly profitable company. But their bread and butter is one product--the iPhone. And the iPhone can't stay #1 forever. Nobody in any industry has ever stayed #1 forever. Slippery slope.
 
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KidAKidB

KidAKidB

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Zirel said:
You talk like Apple is Google, Microsoft, Amazon and others who only have failures to show.
[doublepost=1481301923][/doublepost]

They projected that (and they never overshoot) before the Note 7 exploding batteries fiasco...
Click to expand...

Google, Microsoft and Amazon all have huge successes along with some failures, just like Apple has some failures and successes. No reason to fanboy here.
 
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BootsWalking

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Zirel said:
You talk like Apple is Google, Microsoft, Amazon and others who only have failures to show.
[doublepost=1481301923][/doublepost]

They projected that (and they never overshoot) before the Note 7 exploding batteries fiasco...
Click to expand...

If Google, Microsoft, and Amazon only have failures to show then what does success look like?
 
D

Dirtfarmer

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Jan 18, 2012
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In other news, Wall Street bankers born in the 40's do not and will never understand technology cycles.

Sports and weather at 11.
 
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MacRazySwe

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Assuming perfect knowledge and rational investors, the rumored 2017 iPhone model and projected sales should already be accounted for in the current stock price, right?

Seeing as even WSJ are already reporting on the rumored iPhones I doubt they will surprise anyone to be honest. If anything, they will reduce stock value if they do not live up to market expectations (which is usually the case).
 
Constable Odo

Constable Odo

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Mar 28, 2008
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I don't know if AAPL is an underappreciated stock, but there are certainly other stocks that are greatly overappreciated. There are real stinkers out there that are making huge gains and not having nearly the amount of value that Apple has as far as fundamentals are concerned. I realize the stock market is made up of gamblers so I get how things work. Everything is based on future value and if some stock looks like it could be a future game-changer then that's where all the money goes. Apple doesn't show anything for the future because it's a very secretive company. In that respect, Apple shareholders will always lose out. Apple's P/E will remain like crap and that's just how it is. A healthy, thriving company won't necessarily give a shareholder good stock returns but a company that can offer a future golden ring will definitely give shareholders great returns. Those FANG stocks will continue to make shareholders rich and Apple shareholders will be left out in the cold.

Anyone who believes Apple's share price will be rising significantly will be greatly disappointed. In two weeks, Apple shareholders will be lucky if the stock price is as high as it is today. There are too many headwinds Apple is facing and every fault Apple has will be dissected and constantly spread all over the internet. There has to be lots of factions who want to see Apple fail. Apple is being run by one of the most boring CEOs on the planet and there are other things about him that I'm sure would turn off any potential investors. I realize Steve Jobs is gone and is never coming back. It's unlikely there will be anyone who can come close to replacing him. I've been an Apple user since the 1980s and a shareholder since 2004 but I really don't quite understand the company anymore. It's just being run so differently from other tech companies. Maybe that's an advantage to Apple but it sure seems like a disadvantage to shareholders. I suppose no company can be on top forever but it still seems as though Tim Cook is simply coasting along despite that mountain of cash he's sitting on. Apple doesn't seem to an ounce of aggression left and is being knocked around by far weaker tech companies. It's really pathetic.
 
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Urban Joe

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This kind of puff piece is only designed to lure people in. It's stupid to buy solely based on this "endorsement." Always see what the price is doing and let the chart tell you what to do. At its worst this is pump/dump type of hype. Do your own homework. Learn to qualify and discern the fake from the real.
 
ActionableMango

ActionableMango

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BootsWalking said:
AAPL may be undervalued when compared to the extreme overvaluation of other companies in the S&P but on a rational basis AAPL is fairly valued for a company with negative earnings growth and no current prospects for returning to growth.
Click to expand...

I agree about 90% with you. If Apple could have pulled off a great car, that could have been major growth in an entirely new sector. Sadly that seems to have been a failure.

However, if even half of the rumors about the 10th Anniversary iPhone 8 are true, then Apple will knock it out of the park.

IF Apple can ever really crack the TV problem, they could knock it out of the park there too. That's a big IF though.
 
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