2016 Apple (AAPL) Stock Predictions: A Screaming ‘Buy,’ Vastly Cheap
Apple (AAPL) has become one of the most doubtful stocks to “bet on” on Wall Street. On Dec. 28, 2015 it plummeted to as low as $106 per share. The stock plunged in a pit, way below its 52-week high of $134.54. Nevertheless, investors and analysts continue to be bullish on the stock.Advertisement
Experts on stocks are one in saying that Apple will continue to lead the industry as far as innovation is concerned. The tech giant will head the revolution involving the “The Internet of Things” analysts predict. They are seeing augmented and virtual reality technology, self-driving cars and full-blown HDTVs. Hence, Apple (AAPL) remains a “buy.”
Angelo Zino, analyst at S&P Capital IQ, continues to rate Apple as a “strong buy,” as noted by Forbes. He puts a 12-month price target of $150 per share. His predictions are based on Apple’s compelling valuation as the stock is now trading at less than 10 times, excluding net cash, Forbes noted. The analyst is also optimistic on 2016 Apple products.
Max Wolff, chief economist of Manhattan Venture Partners, predicts that investors will still be putting their faith and money in Apple (AAPL). “As people get cautious but want returns, they migrate back to Apple, because it has the largest stock buyback program ever, because it has the largest cash hoard ever, and because it’s the largest, most sustainable, high-margin electronic producer in the history of the world,” the economist said on CNBC’s Trading Nation. He added that with Apple’s strong 2016 potential, the stock is currently “vastly cheap” for all the money it can pay its investors.
Rick Munarriz of Motley Fool notes “bullish” ratings from analysts and investors alike. Most stock experts are seeing growth in earnings per share of Apple (AAPL) to as much as 6 percent this fiscal year, he said. The stock is gaining momentum towards an acceleration of as much as 10 percent until the fiscal 2017. “Apple is now fetching just 11 times this new fiscal year’s earnings forecast and 10 times next year’s target,” Munarriz said, adding that Apple stock is currently yielding a little more than 1.9 percent, higher that it has been in some time. “If the stock moves higher, that’s the reward in this win-win scenario,” he said.
Apple will continue to hold the top spot in product innovation. It would even hold one of the biggest markets in Asia, China. Hence, Apple (AAPL) will soar and it is only right for investors to continue being “bullish” on stock.
Part of Zino’s optimism on Apple (AAPL) for example is that he is envisioning a world concerned with what he termed as “ubiquitous computing.” He sees Apple as becoming part of everyday life, like a home thermostat that can be controlled remotely by the iPhone.
Stephen Leeb, president and chief investment strategist at Leeb Asset management, thinks that in the ultimate culmination of the Internet of Things, “Apple would be a central, major beneficiary.” He believes that “Apple’s commanding share of the best apps makes it one of the surest beneficiaries of what may be the fastest growing area of the next generation.”
With “the Internet of Things,” Leeb envisions that Apple will lead the “smart cities of the future” that will evolve in China. “Particularly relevant is Apple’s outsized success in bringing its products to China, which makes it a good bet that as China continues to urbanize and moves to create smart megalopolises, it will rely on Apple’s devices,” Leeb outlined.
Munarriz additionally notes that Apple will champion TV streaming, self-driving cars and full-blown HDTVs. Daniel Ives of FBR & Co. has spoken in the same tune. Apple will be very aggressive in augmented and virtual reality technology “through organic and acquisitive means in 2016,” Ives wrote in a note to investor obtained by Apple Insider.
As for “the Internet of Things,” Ives thinks that the iPhone will be a core participant in this technology. Apple’s entry into wearable markets, such as the Apple Watch, opens the $20 billion market opportunity over the next three years, Ives said. “Wearables represent a major tangential growth opportunity in terms of ‘the Internet of Things’, which is expected to be the centerpiece of much technology innovation slated for 2016,” Ives wrote. He is also betting on the Apple TV, Apple Music and Apple smart car as part of its aggressive pursuit of the virtual reality technology.