Strong first-quarter numbers show the underlying company found its winning recipe, and it will remain on a winning trajectory for the foreseeable future.
I’m doubling down on it as it’s oozing with long term growth potential.
In short, it’s in the middle of an enormous transition that will ultimately push it way higher in 2019.
Buying it on weakness in the midst of the markets overreaction to immediate problems makes it a contrarian buy.
The big rebound will happen, but for the time being, things will likely get worse before they get better. As a result, investors looking to buy the dip should wait awhile.
It’s too cheap given its strong, non-cyclical growth potential and multiple, positive catalysts.
In short, strong Q2 earnings confirm that the worst is over for Apple, and the stock now has a clear runway to $230.
Already up more than 30% in 2019, robust revenue growth and margin expansion underscore the long term bull thesis.
Up 13% in 2019, it’s trading at an unusually rich and historically unsustainable valuation.
Favorable economic metrics and growing emphasis on tech integration mean its rally isn’t over just yet.