is apple stock a buy
If you owned Apple Inc. (NYSE: AAPL) stock , you saw a 5% jump in shares on August 13, when Carl Icahn tweeted that he held "a large" position in Apple.
Same with Netflix Inc. (Nasdaq: NFLX), when shares spiked as much as 14%, back on October 31, 2012, when Icahn's regulatory findings revealed he held a tidy 10% stake in the company.
Is Apple Stock A Buy?
Money Morning Capital Wave Strategist Shah Gilani joined FOX Business' "Varney & Co." today (Wednesday) to answer the question, "Is Apple stock a buy?"
Gilani called Apple stock a "Buy" last time he appeared on "Varney." Back on July 23, Apple (Nasdaq: AAPL) announced its Q3 2013 earnings. Apple stock closed out at $418.99 that day, and has since surged to $489.15 as of yesterday.
Gilani's pick was right, and now he tells viewers why he continues to believe it's a good idea to buy Apple stock.
Five Reasons Apple Stock is a Buy
But given all that's happened, AAPL at $400 is a better deal than it may appear.
"It's obviously been hit, but it's bounced. It's held up," said Money Morning Capital Wave Strategist Shah Gilani. Pointing to the recent volatility in the markets, Gilani said, "The markets have been hit really hard and Apple has held up beautifully."
Now it's not likely that Apple stock will take off again like it did a few years ago and shoot up 100%.
But despite slowing sales of the iPhone, the company is still generating profits at the rate of about $40 billion a year and sports a P/E of less than 10. And it now has a dividend yield of about 3%.
The landscape may have changed for Apple over the past year, but it's certainly not the dead money that some believe it is.
In fact, Apple stock could very well be on the verge of a nice little ride to the upside, at least to $500 and maybe beyond.
There are several reasons to think that a rebound in Apple stock is in the offing.
Five Reasons Apple Stock (Nasdaq: AAPL) is a Buy
Is Apple Stock a "Buy"?
While some analysts are screaming "Buy," there's some discouraging news to consider. For example, Apple supplier Cirrus Logic Inc. (Nasdaq: CRUS) reported an inventory glut of audio chips that signals Apple iPhone sales could fall drastically short of expectations.
Money Morning Chief Investment Strategist Keith Fitz-Gerald explains what's going on with Apple stock, whether or not investors should scoop up shares, and what to expect next from this iconic company.
Is Apple Stock a “Buy”?
The markets have been in a period of historically low volume with so much uncertainty swirling around the economy. There has even been speculation that the Apple iPhone 5 could add half a percentage point to GDP in the fourth quarter.
With all this power behind the Apple iPhone 5, does that make Apple (Nasdaq: AAPL) stock a definite "Buy" for investors?
Money Morning's Shah Gilani appeared on Fox Business' "Varney & Co." this morning to talk about investing in Apple stock. He also touched on the major macro events affecting the global economy and how they're shaping investor morale.
Gilani tells investors what to focus on with so much up in the air: Election 2012, China's growth issues, the European debt crisis, and the markets at multi-year highs.
Watch the accompanying video to see all of Gilani's analysis.