Why is apples stock so low

A company's stock price reflects investors' collective view of how much money that company will make in the years ahead. Generally speaking, when it trades at a high price-to-earnings ratio , investors expect rapid profit growth. By comparison, tech giants Alphabet and Microsoft trade at roughly 32 times and 25 times projected earnings for the coming year. Given that Apple is currently in the midst of what is likely to be an iPhone " super cycle ," during which the company is likely to see a surge in its iPhone revenue and profits, it might be surprising to see the stock trading so cheaply.

Website 4-Traders publishes an up-to-date table of the average estimates of Apple's future financial performance. Per that table, analysts expect Apple to deliver substantial revenue and profit growth during fiscal year That's a lot of profit growth, and if Apple hits those numbers in the current fiscal year, it'll enjoy record revenue, record operating profit, and record net income.

Those figures, amplified by the company's aggressive stock repurchase activity , should easily translate into record earnings per share. Unfortunately, analysts expect Apple's operating profit growth to slow to a snail's pace after the current fiscal year. I don't have access to each analyst's research, but I suspect that analysts are cautious about the potential for iPhone growth after the super cycle that Apple is likely to enjoy during fiscal year I wouldn't even be surprised to see some analysts modeling year-over-year iPhone revenue declines during Apple's fiscal year At the end of the day, investors often rely on consensus analyst estimates in trying to figure out how much revenue and profit growth a company is ultimately expected to deliver, so stock prices often reflect heavily those analyst expectations.

Then there are fears of inflation, which are causing nerve-wracking responses in tech investors. During the economic recovery, the consumer price index CPI is rising at a more rapid rate than normal, which is causing the value of the dollar to fall. This market sentiment puts stocks like Apple in the line of fire.

Value investor Warren Buffett is still strong on Apple stock, which suggests that the security holds more weight than the current market cap is giving it credit for.

In fact, Apple is by and large Berkshire Hathaway's largest position. Analysts are in strong consensus that Apple is a buy, especially given the YTD correction. This dip helps investors compound their position or even average down their cost basis if they want.

Apple Inc. Apple AAPL, Full earnings coverage: Apple profit nearly doubles as iPhone sales boom, but company projects growth slowdown. That growth rate also benefited from a favorable comparison as certain services were significantly impacted by the very beginning of the COVID lockdowns a year ago, he added. I went ahead and plugged in the numbers. Lastly, consider that Apple has topped EPS consensus by 14 cents each quarter for the past ten periods.

Following robust fiscal Q3 earnings that did not propel AAPL forward, the Apple Maven concluded that the stock is attractively valued once again. What is your opinion? How much one pays to own the shares is a key factor in the success of any investment. This is why valuation analysis is so important.