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!

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!