Apple Inc (AAPL) Has Reasons for Bearish Outlook: Analyst

Apple Inc (NASDAQ:AAPL) has been on a downturn over the last two months since peaking at more than $700 per share, but whether it’s time to buy the stock yet has had some mixed reviews from analysts. Earlier Thursday, analyst Dominic Chu was on Bloomberg TV to talk about the bearish moves by the stock, and gave his outlook for the future along with concerns from investors about Apple (AAPL) moving forward.

Apple Inc. (NASDAQ:AAPL)

“There are really three concerns they are citing right now,” Chu said. “First, tablet market share. The iPad used to be the No. 1 product out there. They still are, but the iPad made up 66 percent of the market at this time last year. Now, it’s down to 50 percent.” That report is according to a recent quarterly survey by IDC.

“Also, the iPhone 5,” Chu continued. “Yes, tremendous demand for that product, but if there’s so much demand and they can’t meet that demand, can they continue to sell that many phones? And iPhones are key, because they make up two-thirds of Apple’s profit. And of course there is management turmoil right now, with (iOS software head) Scott Forstall and (retail chief) John Browett no longer with the company. All of a sudden, you have a very glistening Apple losing a little bit of its shine.”

However, Chu was quick to pivot to the positives of Apple Inc (NASDAQ:AAPL) and why it might be a good stock to buy in the near future. “From a price-to-earnings perspective, Apple trades as 12 times earnings, while the S&P trades at 14, so it’s on sale compared to the (broader market).” He also pointed out that Apple Inc (AAPL) stock is selling at 3.3 times sales, which is nearly three times the rate of the broader market (a 1.3 ratio), which is a premium, but he added that the stock is currently posting a nearly 2 percent dividend, slightly below the overall market.

What do you think about the fundamentals and the future of Apple Inc (NASDAQ:AAPL) stock? Would you jump in now, strengthen your position, or would you take a wait-and-see perspective as the holiday shopping season heats up? Do you think this is a time for investors like billionaire David Tepper of Appaloosa Management LP to adjust holdings? We’d like your feedback!

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!