Back in April, we flagged the massive entry opportunity in shares of Apple Inc. (NASDAQ: AAPL). By then, the tech titan had failed to get off the line in 2024 while the main indexes were cruising through high after high. For example, the benchmark S&P 500 Index had gained 11% since the first week of the year, while Apple shares had dropped about the same.
However, the run of negative updates and headlines that had held the stock back while its peers had surged was coming to an end. In the three months since it bottomed out towards the end of April, Apple's stock has gone on a rampage. Since June, it's gained more than 40% in value and has returned to closing at record highs.
Apple Surges Ahead of the S&P 500
For context, it's now easily outpacing the S&P 500, which, in comparison, has gained 13% over the same timeframe. This is impressive for the index, which, with around a 20% gain for the year so far, is having one of its best runs for some time. It's clear from this that the risk-on sentiment that began sweeping across equities last October is going nowhere. This is good news for those of us on the sidelines who missed the recovery in Apple shares.
Apple has managed to shake off many of the investor concerns holding it back at the start of the year and is back doing what it does best: rallying. According to several analysts this week alone, the stock has at least 30% upside potential in the near term.
Bullish Upgrades for Apple
That was the call from Loop Capital on Monday, as the team there upgraded their rating on Apple stock from a Hold to a Buy while giving shares a fresh $300 price target. Considering Apple has been on the good side of analysts for some time now, many of whom were upping their price targets just last week, this one raised some eyebrows for all the right reasons.
At $300, Loop Capital's price target is the new street-high among analysts and speaks volumes to the potential upside still in the stock. The team there is particularly bullish on Apple's exposure to the boom in artificial intelligence (AI), which the Morgan Stanley team has also been weighing in on.
The team there has been clear about their bullish expectations for Apple and sees a "record multi-year upgrade cycle" emerging. During yesterday's session, they went so far as to name Apple on their Top Pick list while reiterating their Buy rating on the stock. They see AI as having the potential to "spark a mini upgrade cycle" among Apple devices such as the iPad and iPhone, which would tie in nicely with the most recent sales forecast reports.
Anticipating Apple's Next Earnings: Stock Poised for Gains
Last week, the Wedbush team speculated that the new iPhone could ship as many as 90 million initial units, versus the original estimate of 80 to 84 million. Wedbush analyst Dan Ives, a longtime Apple bull, sees the Chinese market as a key part of Apple's next growth phase.
Apple shares closed at a record high last night, which, based on all this optimism, probably isn't all that surprising. However, with them still trading below $235, while fresh price targets land between $275 and $300, investors should still be getting excited.
The negative headlines have all but dissipated for now, while the latest reports show the company going from strength to strength. With the company's latest earnings report due out at the start of August, we can expect to see the stock gaining momentum as more and more investors buy into the new chapter of growth that's clearly kicking off.
