Apple: The most undervalued large cap stock in the S&P 500
A blogger-analyst highlights the growing gap between its earnings and its stock price
“In just four-years,” writes Andy Zaky in a passionately worded post published Sunday on his Bullish Cross blog, “Apple’s earnings have grown 600% to $27.68, and its revenue skyrocketed 341% to $108.2 billion. That’s the most explosive 4-year growth rate of any large-cap company on the entire S&P 500.”
Yet Apple’s AAPL shares closed last week at $363.57 with a price-to-earnings ratio (by his calculation 8.5) that Zaky characterizes as “abysmal.”
“There seems to be an ever-present sentiment-war being waged against Apple as it is constantly hit from all sides in a very concerted way,” he writes. With the passing of Steve Jobs, he says, it’s only gotten worse.
In an effort to balance the scales, he offers a series of charts contrasting Apple’s sales and earnings growth rates with a stock price that has failed singularly to keep up. The chart that shows this most clearly is copied below. To see the rest, click here.