#6 - Apple (NASDAQ:AAPL)
Perhaps no tech company was the face of the coronavirus as much as Apple (NASDAQ:AAPL). The company had to shut down operations in Wuhan, China the epicenter of the outbreak. And even though that production is coming back on line, the company is closing stores in the United States in response to social distancing.
And many consumers are considering cutting back on purchases which is causing many to believe that the company will see declining iPhone sales in 2020. The company was previously thinking that 2020 sales would be strong as the company introduced its first 5G iPhones.
But it’s hard to see the current crisis as being an existential threat to Apple’s business. As CEO Tim Cook reminded employees, the company has about $200 billion in cash and cash equivalents. They are well prepared to weather this storm.
As far as demand? We’ve been down that road before too. But when the coronavirus recedes, the American economy will ignite, as will consumer’s appetite. Remember the company sold an unexpectedly high number of iPhone 11’s that had as its main feature … a better camera.
2020 may not be a banner year for Apple, but the opportunity to buy shares at a 25% discount to the company’s 52-week high is a rare opportunity.
About Apple
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
Read More - Current Price
- $229.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 11 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $235.25 (2.3% Upside)
