Laura Banks
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The numbers don’t lie: Apple’s stock is a bargain

Even as the world’s largest company, Apple keeps outperforming

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Apple CEO Tim Cook’s rollout of new products on Wednesday should attract attention to the company’s undervalued stock.

In late July, I said investors were looking at a “golden opportunity to buy Apple’s stock” after the iPhone maker’s shares declined 4%.

That drop followed a fiscal third-quarter earnings report that showed strong earnings and sales growth, but the company disappointed investors with a lower-than-expected outlook for fourth-quarter sales.

Since then, Shares of Apple Inc. AAPL, +1.46% tumbled 18% from $125.22 on July 22 to a 2015 closing low of $103.12 on Aug. 24, before recovering to $110.15 on Wednesday. So the shares are down 12% since I made my call. On Wednesday, the shares were down 1.9%, following Apple’s annual rollout of new products, including the iPhone 6s and 6S Plus, the iPad Pro and a new Apple TV streaming device.

Apple executives also discussed partnerships with several companies, including IBM, Cisco, Microsoft, in order to better orient the iPad Pro toward enterprise customers.

Of course, I didn’t predict the S&P 500’s SPX, +0.45% 8% decline since July 22 either. It appears I was “early” in suggesting that Apple would be a good long-term investment. Then again, “long term” means being committed for several years, and not reacting to the day-to-day fluctuation of the stock market.


Apple’s stock has more than tripled over the past five years, but it hasn’t always been a smooth run.