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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.