However, Bliston Asset Management’s senior analysts see it as an opportunity to jump into Apple stock at what they consider as currently undervalued. Apple is, and will remain, without doubt an especially profitable company. Anyway you care to calculate its valuation metric, the shares still remain comparably cheap.
It’s also quite possible that Apple are in a stage of consolidation after the heights of the last 2 years which has seen the stocks extraordinary rise in value of almost 75%. Bliston Asset Management’s Senior Equities Analyst reported that “Apple has performed spectacularly well over the last 10 year period and has seen a few corrections of 10% or over during this time which should sooth shareholders fears that this selloff won’t last long. We advised our clients to buy Apple stock back on 15th January when they were $106.82 and advised them to sell on 19th march when they reached $127.50 there seems to be a similar pattern forming and we believe now is a good time to buy as Apple’s business outlook hasn’t changed greatly since its high in April”.
Two main perceived reasons for Apples recent drop are: China and Apple watch sales both of which Apple remain extremely bullish about.
China is where Apple see their largest market forming and believe the growth will be substantial year on year with 40 stores expected by the middle of next year. Apple’s CEO Tim Cook has already backed this up when he predicted that China will become “Apple’s largest market at some point in the future". Bliston Asset Management’s Senior Equities Analyst says “this is another reason they are recommending Apple as buy right now as they believe Apple are hell bent on making China an unprecedented success and the prospects of them achieving that are very good”.
Apple Watch, there are concerns that the Apple watch sales are not meeting expectations and with the iPhone accounting for almost 74% some analysts are voicing their concern that Apple is overly dependent on the iPhone. However Tim Cook still remains supremely confident stating “We believe that the possibilities for Apple Watch are enormous.” With this being the first foray for Apple into the wearable technology market and their first watch, Bliston Asset Management believes future versions of the Apple watch will undoubtedly improve. More functions and apps are being developed all the time which will likely give the next upgrade or new model an extra boost in sales and appeal.
Apple has continued to be profitable, they reported revenue of $49.6 billion and year on year growth of 33%, (which was their fastest since 2012) for its fiscal third quarter, meanwhile earnings per share surged a colossal 45%, Bliston Asset Management’s Senior Equities Analyst said “he could see no reason why this continued level of achievement could not be maintained”.