$Apple(AAPL)$ At today’s prices, Apple stock trades for around 24 times trailing twelve-month earnings. To some, this may appear pricey, given the potential for growth deceleration, plus the fact that, with rising interest rates, even the most high-quality of stocks have moved down to valuations under 20 times earnings.
However, it’s possible that AAPL stock can maintain this valuation, throughout the current rough patch. Although the market has its concerns, it’s well aware that this company is much better-positioned to bounce back from the in-progress downturn than its peers.
While Alphabet and Meta may be still struggling to get earnings back to pandemic-era highs in 2024,FY2024 earnings forecastscall for Apple to report earnings of $6.83 per share, well above the $6.11 per share reported this fiscal year, and the $5.61 in EPS reported during FY21.
With less uncertainty over future results, it’s doubtful investors will push AAPL stock much lower than it currently stands today. From there, as the recovery takes shape, and the anticipated re-acceleration of earnings growth begins to appear in its results, shares will likely kick off a trip back toward their all-time high, and then onto new highs.
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