Copyright © 2020 InvestorPlace Media, LLC. This might mean that the stock actually treads water for a while before continuing its rise. Sign up for free newsletters and get more CNBC delivered to your inbox. A launch event for a new Apple Watch and iPad later in the month wasn't enough to move the stock higher, and shares finished September down 10%, according to S&P Global Market Intelligence. In 10 years, the stock …

In effect, they cancel each other out and leave AAPL stock without a historical valuation driver. CNBC says that it will release four models with three different screen sizes. Is Apple's New HomePod Mini Too Little, Too Late? The euphoria over stock splits by both Apple and Tesla seemed to trigger the sell-off in the Nasdaq in the beginning of September after the tech-heavy index had nearly doubled after bottoming in March. But Apple’s dividend yield today, based on its 82-cent-per-share dividend payment, is higher than that, at 0.72%. See you at the top! Nevertheless AAPL stock is still up over 52% so far this year, and more than 100% in the past year. Apple is kicking off its product launch on Tuesday, and if history is any gauge, this could be a good time to buy the technology giant's stock. Market data powered by FactSet and Web Financial Group. Osborne Computer went out of business in the early 1980’s when they pre-announced a new model of computer. In other words, AAPL stock is about 82% overvalued compared to that metric. Nasdaq Apple stock has a forward 2020 P/E multiple of 34.5 times earnings for 2020 and 29.9 times for 2021. 2020 InvestorPlace Media, LLC. 2020 has been a banner year for Apple (NASDAQ:AAPL), but that momentum wasn't enough to help the stock in September as shares of the iPhone maker skidded following its stock split at the end of August.

Apple share performance has been solid in the past year, having risen by more than 40 per cent. Over the last week of the month, the stock recouped some of its losses as the market rebounded on hope that Congress would pass another stimulus package. For example, 38 analysts polled by Seeking Alpha show an average EPS for 2020 of $3.25 for 2020 and $3.86 for 2021. Returns as of 10/15/2020. That is still holding part of the world's economy hostage. 1125 N. Charles St, Baltimore, MD 21201. Tim Cook, chief executive officer of Apple Inc., speaks about the new iPhone Pro during an event at the Steve Jobs Theater in Cupertino, California, U.S., on Tuesday, Sept. 10, 2019. quotes delayed at least 15 minutes, all others at least 20 minutes. Morningstar has a page that shows that the average P/E has been only 17.4 times earnings each year over that period. In other words, it is highly likely that what drove the stock price up was investor sentiment pushing up its price-earnings ratio and other valuation multiples.

The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020. The company's fourth-quarter earnings report is also due out at the end of the month. Barron’s quotes the Baird analyst as saying that the company’s Sept. 15 rollout of its 5G iPhones, which ship in October, could end up pushing the stock higher. Apple is kicking off its product launch on Tuesday, and if history is any gauge, this could be a good time to buy the technology giant's stock. All Rights Reserved.

The pullback came as the Nasdaq entered a correction in the beginning of September, indicating investors believed tech stocks had become overvalued.

Analysts see revenue falling 0.3% to $63.8 billion, and earnings per share slipping from $0.76 to $0.70. He believes that Apple’s 5G lineup and the increasing trend to remote work will push the stock higher.

But 5G is such a new type of technology that many buyers may wait until all the kinks work themselves out. Mark Hake runs the Total Yield Value Guide which you can review here. Apple came into September at all-time highs, riding a surge at the end of August after announcing a 4-for-1 stock split.

These multiples are significantly higher than the average history over the past five years. A Division of NBCUniversal. I am not implying Apple could go out of business. However, the split-driven pop quickly evaporated as savvy investors seemed to realize that it didn't actually add any value, even though the stock gained 21% in August in anticipation of the split. That equals $221.62, or $98 above its price on Friday, Sept. 11 of $112.00. That may not ever happen. Copyright © Article printed from InvestorPlace Media, https://investorplace.com/2020/09/aapl-stock-still-looks-expensive-here-but-5g-launch-could-be-a-catalyst/. To find this number we divide 82 cents by 0.37%. Join Stock Advisor.
On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.

Apple stock has a forward 2020 P/E multiple of 34.5 times earnings for 2020 and 29.9 times for 2021. But it could show the trend of the stock going forward. We want to hear from you. Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return.

Photographer: David Paul Morris/Bloomberg via Getty Images, David Paul Morris | Bloomberg | Getty Images, A blue wave may be best outcome for state budgets and the muni bond market, Mike Santoli's market notes: Key S&P levels, earnings first take, crowded stock shakeout, Jefferies raises S&P 500 forecast on expectations for greatest profit turnaround in history. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. All rights reserved.

Apple shares have outperformed the S&P 500 by an average of 13 percentage points in the six months following an iPhone launch event, according to data compiled by Morgan Stanley.

Data is a real-time snapshot *Data is delayed at least 15 minutes. 1125 N. Charles St, Baltimore, MD 21201. This is consumers could become more willing to buy a new iPhone because of the 5G features. Apple shares could be volatile again this month as the company is expected to unveil its new iPhone 12, its first 5G phone, which some analysts expect to spark a "supercycle" of upgrades. The iPhone maker's big event on Sept. 15, revealing new products and an Apple One bundled subscription, was also greeted with shrugs from the market as the stock fell in each of the three sessions following the event. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Apple (NASDAQ:AAPL) stock is down 10% since the end of August, which is also when the stock implemented its 4 for 1 stock split.

Prior to the recent downturn, an analyst at D.A. On the other hand, Apple is not overvalued in relation to its historical dividend yield.

In contrast, the S&P 500 Index (US 500) has dropped by more than 2 per cent during the same period. Apple Unveils Latest iPhones and a New Home Speaker, Apple Announces the iPhone 12: What You Need to Know, Copyright, Trademark and Patent Information. Get this delivered to your inbox, and more info about our products and services. I write about consumer goods, the big picture, and whatever else piques my interest. Got a confidential news tip? He cites the company’s increasing market share and the strength of its “product ecosystem.”. The 5G launch event could indeed act as a spark, but the company runs the risk of a sharp Osborne effect. In the following days, Apple shares continued to slide as its feud with Fortnite maker Epic Games reached a fever pitch after Apple booted it from the App Store for refusing to collect its 30% commission on in-app payments.

Apple unveiled the iPhone 11 that will replace the XR and start at $699. But keep in mind that assumes that the stock has to revert to its prior five-year average.

So, on the one hand, AAPL is too expensive on a P/E basis, by 82%, and on the other hand, with dividend yield, it’s 98% too cheap. The move underscores what many see as Apple's control over apps as it essentially has a duopoly with Alphabet's Android. © 2020 CNBC LLC. Why investors still choose Apple in 2020.

Apple Stock in the Big Picture Apple is still having supply chain problems, thanks to the COVID-19 pandemic.

No one was willing to buy the existing models so the company’s sales dived. All rights reserved.


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