Shares of Apple Inc. (AAPL) hit a new 52-week low on Friday, printing the tape at $91.85. That’s a 31% decline, or $41.12 per share, from the 52-week high of $132.97 set in July 20, 2015.
AAPL stock closed at $92.72 at the end of Friday’s trading session, printing a one-year loss of 24.46%, and year-to-date loss of around 11%.
Despite the stock’s recent slide, RBC Capital Markets analyst Amit Daryanani believes the move is an overreaction to Cupertino’s disappointing 2Q16 earnings report, noting the stock’s price-per-share-deterioration could spell a buying opportunity.
“Investor feedback on Apple post-earnings call is skewed negative,” Daryanani said (via Investors.com) in a research report Sunday. “But we think the stock is oversold and should see a healthy bounce from here.”
Daryanani reiterated his ‘Outperform’ rating on Apple shares, with a price target of $120, noting, the name “is oversold and valuation should provide support at these levels.”
For fiscal Q2, Apple posted its first year-over-year decline in quarterly revenue since FY 2003 and first-ever drop in iPhone unit sales. Apple’s guidance for the current 3Q was also significantly lower than Wall Street expectations, indicating sales of $42 billion, down 15% on a year-over-year basis. It’s worth noting that despite the decline in sales, Apple managed to rake in $10.5 billion in profit for the second quarter, a problem many corporations would kill to have.
Valuation Metrics
Apple began trading this morning at $93.00 to currently trade 0.54% higher from the prior days close of $92.72. On an intraday basis it has gotten as low as $92.59 and as high as $93.77.
Apple shares are priced at 9.92x this year’s forecasted earnings, compared to the industry’s 10.23x earnings multiple. The company’s current year and next year EPS growth estimates stand at (10.3%) and 10.60%, compared to the industry growth rates of (6.9%) and 13.50%, respectively. AAPL has a t-12 price-to-sales ratio of 2.19. EPS for the same period registers at $9.40.
Apple shares have declined 14.06% in the last 4 weeks and 0.78% in the past three months. Over the past 5 trading sessions the stock has lost 0.49%. The $510.65 billion market cap Cupertino, California-based company has a median Street price target of $120 with a high target of $185.
Apple is down 24.46% year-over-year, compared with a 2.29% loss in the S&P 500.
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