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But just when it looked like the Apple bears might be right, the company started to gain back lost ground.
From the year's low of $385.42 on April 19, AAPL has climbed nearly 27% and is again close to $500. The stock closed at $489.10 yesterday (Tuesday).
Much of the recent spurt in the Apple stock price came thanks to much higher than expected sales of the new iPhone 5S and iPhone 5C models in their debut weekend. Analysts had forecast sales of 5 million to 7.75 million units, but Apple announced sales of 9 million.
Apple also raised guidance on both revenue and profit margin for the current quarter to "near the high end" of its previously provided ranges.
"If this stock gets above $515 or maybe $518 – and then consolidates between, say, $500 and $515, you darn well better own this stock – it's going to $585 … it's going to $600," Gilani said.
Why the Apple Stock Price Will Keep Rising
Gilani made his call on AAPL all the way back on July 10, early enough that the stock has gained 15% since.
He gives six reasons for why he thinks the Apple stock price still has a lot of upside to come:
- The new iPhones are just the beginning of several new products Apple will announce this fall. Plus, it's widely suspected that the company is working on a wearable technology device, such as the iWatch, as well as something related to television.
- With a forward Price/Earnings (P/E) ratio of roughly 11, the stock remains very cheap on a valuation basis.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.