“Kyle, let’s look at a few examples. Priceline.com Inc. (Nasdaq: PCLN) is not a big innovator, right? But it’s trading more than 10 times higher than Apple at $1,330 per share. Its forward P/E is 20. Now, that’s almost double Apple’s.”
“Or take a look at Google Inc. (Nasdaq: GOOGL). That’s trading at $663 and has a forward P/E over 19. Again, you’re paying almost six times as much for Google.”
And if those comparisons aren’t enough, Fitz-Gerald took a look at Apple’s own growth trajectory when making bullish Apple stock price predictions.
“Apple’s probably going to grow revenue and earnings by 25% to 35% a year for the next five to 10 years,” Fitz-Gerald told readers Wednesday. “That’s rarified air in today’s stimulus-laden, politically charged environment.”
Money Morning Capital Wave Strategist Shah Gilani joined the discussion on FOX Businessfollowing the Q3 earnings report as well.
“I still love Apple stock. This is an opportunity to buy,” Gilani said on “Varney and Co.” in late July. “The only problem I saw in the earnings was a quarter-over-quarter sequential 23% drop in iPhone sales. That happens every year; there’s nothing unusual there.”
“The revenues are up 33%, the profits were up 38%, it’s a cash-cow with $203 billion in cash,” he continued. “This is the largest, most profitable company in the world. You have to own this company. This is a buying opportunity.”
Money Morning Trading & Options Expert Tom Gentile also has a price target of $200 in the next 12 months.
The Bottom Line: There’s no denying that the recent drop in the Apple stock price stings. The company has lost 11% in just the last two weeks, shedding more than $90 billion in market cap. But leaving AAPL stock now would be a major mistake. This is one of the best buying opportunities we’ve seen for AAPL in years. Several of our Apple stock price predictions call for $200 within the next 12 to 14 months.
We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars;new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet. And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.