With Apple (AAPL) stock down 10% year to date vs. an 8.5% increase for the S&P 500 index, investors are wondering what it will take to break the consumer electronics giant out of its funk.
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"Apple stock has had a rough start to the year," Evercore ISI analyst Amit Daryanani said in a client note late Monday. "We have fielded a large number of investor questions around what could unlock the upside on the stock and help drive the momentum back up."
Daryanani pointed to three possible upside drivers for Apple stock. They include Apple revealing its artificial intelligence strategy, announcing higher dividends and share buybacks, and showing signs of services growth.
Meanwhile, investor worries about Apple include its lack of an AI story, iPhone sales weakness in China, and regulatory issues around its App Store policies, he said.
Apple Stock Sell-Off Called 'Overdone'
"We think the sell-off is rather overdone," Daryanani said. He rates Apple stock as outperform with a price target of 220.
On the stock market today, Apple stock rose 0.3% to close at 173.23.
Many investors have moved out of Apple stock and into AI stocks such as Nvidia (NVDA), Daryanani said.
Apple Chief Executive Tim Cook has promised to reveal some AI innovations that the company has been working on later this year. That is likely to happen at the company's Worldwide Developers Conference, or WWDC, in June.
"We think Apple's AI strategy will focus on incorporating on-device inference for LLMs (large language models) that will substantially uplift the user experience for not only the iPhone but also Mac and iPad," he said. That could drive a hardware refresh cycle, he said.
Plus, Apple usually updates its capital allocation plans with its March-quarter results in April. That's when it is likely to increase its quarterly dividend and raise its stock repurchase plans, Daryanani said.
Apple stock has a mediocre IBD Composite Rating of 59 out of 99, according to IBD Stock Checkup.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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FAQs
Market Sentiment And Analysts' Predictions
The average price target across analysts is $214.29, which is even with AAPL's current price. Analysts also expect the iPhone maker to close out fiscal year 2024 with sales growth of 8.1% and EPS of $6.59. Last year's EPS was $6.13.
Is Apple stock expected to go back up? ›
Based on 35 Wall Street analysts offering 12 month price targets for Apple in the last 3 months. The average price target is $212.43 with a high forecast of $275.00 and a low forecast of $164.00. The average price target represents a 2.06% change from the last price of $208.14.
What is Apple stock forecast for 5 years? ›
Analysts are expecting Apple to sustain double-digit earnings growth of 11% for the next five years. Based on its fiscal 2023 earnings of $6.13 per share, its bottom line could jump to $10.33 per share in five years.
Can Apple stock reach $1000? ›
To be or not to be is still a question. While it is theoretically possible for Apple's stock to reach $1000 per share in the future, this would depend on sustained strong financial performance, successful penetration and expansion in new markets, and a favorable economic environment.
What will Apple stock be worth in 2025? ›
Long-Term Apple Stock Price Predictions
| Year | Prediction | Change |
|---|
| 2025 | $ 268.76 | 27.60% |
| 2026 | $ 342.95 | 62.83% |
| 2027 | $ 437.62 | 107.78% |
| 2028 | $ 558.42 | 165.13% |
2 more rowsInteractive chart of historical net worth (market cap) for Apple (AAPL) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Apple net worth as of June 27, 2024 is $3283.03B.
Is Apple a buy, sell, or hold? ›
Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 70 buy ratings, 25 hold ratings, and 4 sell ratings.
What is the best stock in past 5 years? ›
Best Performing Stocks Over the Last 5 Years
| Ticker | Company Name |
|---|
| 1 | CELH | Celsius Holdings |
| 2 | SMCI | Super Micro Computer |
| 3 | NVDA | Nvidia |
| 4 | ELF | e.l.f. Beauty |
6 more rowsJun 1, 2024
According to the latest long-term forecast, Apple price will hit $250 by the middle of 2026 and then $300 by the end of 2027. Apple will rise to $350 within the year of 2028, $400 in 2029, $450 in 2031 and $500 in 2033.
What if you invested $1,000 in Apple 20 years ago? ›
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth almost $460,000. The same $1,000 invested in the S&P 500 would theoretically have turned into about $7,000 over the same period.
The lowest closing price for Apple (AAPL) all-time was $0.04, on July 8, 1982. The latest price is $210.62.
What is the highest Apple stock has ever been? ›
Historical daily share price chart and data for Apple since 1980 adjusted for splits and dividends. The latest closing stock price for Apple as of June 28, 2024 is 210.62. The all-time high Apple stock closing price was 216.67 on June 17, 2024.
Will stocks go back up in 2024? ›
Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.
What are the best stocks to invest in 2024? ›
Best S&P 500 stocks as of June 2024
| Company and ticker symbol | Performance in 2024 |
|---|
| Constellation Energy (CEG) | 86.0% |
| Deckers Outdoor (DECK) | 63.7% |
| General Electric (GE) | 61.9% |
| First Solar (FSLR) | 57.7% |
6 more rowsThe 28 analysts with 12-month price forecasts for Apple stock have an average target of 218.21, with a low estimate of 164 and a high estimate of 275. The average target predicts an increase of 3.60% from the current stock price of 210.62.
What is Apple stock return in the last 5 years? ›
Five Year Stock Price Total Return for Apple is calculated as follows: Last Close Price [ 214.10 ] / Adj Prior Close Price [ 47.75 ] (-) 1 (=) Total Return [ 348.3% ] Prior price dividend adjustment factor is 0.97.
