This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Michael Kramer and the Clients of Mott Capital own the shares of AAPL
2019 is nearly here, and that means it is time to roll out my ten predictions for the new year. As I did last year, I will start with number 10 and work our way up to number 1 over the last month of 2018. Enjoy!
Prediction #3 – Apple is The Comeback Stock of 2019 and Rises 70%
Apple’s stock has fallen 33% since October from their highs. But with the Fed on hold, interest rates and the dollar falling, and oil rising, the stock markets risk appetite comes back in a big way in 2019. Not only that but once again Apple proves the skeptics wrong and the iPhone Xs, X max, and Xr will deliver record-breaking iPhone revenue when the company reports fiscal first quarter results in February.
On top of the strong iPhone revenue, Apple services continue to show strong growth and impressive gross margins. Investors finally realize that Apple is more than just a phone maker, but a consumer services business. As a result, investors finally re-rate the stock, boosting its PE ratio to 20 times forward earnings, in line with other consumer stocks.
AAPL PE Ratio (Forward 1y) data by YCharts
The result is a stock that recoups all of its losses, reclaims the crown of the most valuable company and a market cap of over $1 trillion. Shares end up rising to roughly $265, an increase of 70%.
It makes Apple the comeback stock of the year and our prediction #3 for 2019.
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Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
Amazon, stock, predictions, predict, 2019