The Apple Comeback Will Be Better Than the Setback

Core Viewpoint - Apple Inc. is currently seen as a strong investment opportunity despite its recent underperformance compared to other tech stocks and market indices, with a significant price gap that presents potential upside for patient investors [2][5][11]. Price Performance - Apple shares are currently trading at $213.36, which is 82% of their 52-week high, indicating a gap of nearly 20% compared to the peak [3][4]. - The stock has a price target of $234.95, suggesting a potential upside of 10.12% from the current price [9]. Market Sentiment - There is a divergence in investor attention, with more speculative growth stocks attracting capital, which has led to a lack of investment in fundamentally sound companies like Apple [2][4]. - Institutional interest in Apple is increasing, as evidenced by Swedbank boosting its holdings by 2.4%, bringing their stake to $4.3 billion [10]. Earnings Expectations - Analysts expect Apple to report earnings per share (EPS) of $2.34 in Q1 2026, a 42% increase from the current EPS of $1.65 [11]. - The market is willing to pay a premium for Apple, reflected in its high price-to-book (P/B) ratio of 56.6x compared to the sector average of 7.1x [13]. Analyst Ratings - Wedbush analyst Daniel Ives maintains an Outperform rating on Apple with a price target of $270, indicating confidence in the stock's potential to reach new highs [7][8].