Summary Apple’s stock has lagged the broader market in recent months. The stock is attractively valued based on historical price-EBITDA relationships and analyst estimates. A robust product release schedule for 2023 will provide a boost. Apple has best-in-class returns on capital which supports a premium valuation even in today’s market. Nikada/iStock Unreleased via Getty Images What Goes Down… Over the last few months, Apple (NASDAQ: AAPL ) stock has done something that it doesn’t often do: underperform. Since the company’s last earnings call on October 27th, the stock has broken away from the broader market, returning -4% while the S&P 500 ( SPY ) has delivered 8.5%. AAPL vs SPY Since October 2022 (Koyfin) The reason for this short-term underperformance isn’t exactly obvious. Apple, after all, reported record revenues in its October earnings release, and Tim Cook announced that the company has yet to feel the sting of consumer softness in the economy. Investors, however, don’t seem to have believed him. From worries about production issues in China to softening demand for the iPhone that investors seem certain will materialize at some point, investors just seem plain worried that something will go awry at the world’s largest company. We […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
