Apple Stock is Just Stuck There

I just sold all my remaining shares of Apple (AAPL) because the stock gapped down after it reported earnings. I almost sold before the company reported, but I figured I’d give management one last chance to figure it out. It hasn’t. Apple needs something new, or something in demand. My HTC One is much better than the latest iPhone, which really hasn’t changed in years. With limited profit growth, this stock is just stuck there.

One Year Chart

AAPL_2014_Q15% profit growth last quarter? Weak. Sales increased only 6%. Estimates show profits could grow 16% 2QtrsOut but estimates just declined and probably will again.

This stock’s got a P/E of 12, and that’s where it should be. The estimated long-term profit growth rate of 20% is too optimistic.

Fair Value

AAPL_2014_Q1_FVI feel AAPL travels back-and-forth between $500 and $600. I don’t see that changing. I almost think this stock is worth 12 times earnings.

Sharek’s Take

Apple is done as a large cap growth stock. This is old news. But at least last year we had hopes it could make it back to $700, not anymore. There’s nothing going on here, this stock could be range-bound for years.

View the Earnings Table here.
View the Profit History here.
View the Ten Year Chart here.

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