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How Apple’s stock priced can jump 73% in two years

MacDailyNews

Dec 5

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No, it’s not getting a visionary CEO, although that certainly wouldn’t hurt, either. Apple stock is trading up roughly 26% so far in 2024. Investors may be wondering if the world’s most valuable company has room for more upside over the next two year. How does 38% to 73% gains from current levels sound, Apple investors?

Harsh Chauhan for The Motley Fool:
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[A]nalysts expect Apple’s top line to increase by 6% in fiscal 2025 (which will coincide with nine months of calendar 2025) to $414.5 billion. Its earnings, on the other hand, are expected to increase by almost 10% to $7.39 per share. The growing adoption of generative AI smartphones is going to play a central role in helping accelerate Apple’s growth this year…
Apple’s earnings are expected to jump to $8.31 per share in fiscal 2026. If we multiply the projected earnings after two years by the U.S. technology sector’s average price-to-earnings ratio of 50, Apple’s stock price could hit $415 in a couple of years. That would be a 73% jump from current levels.
Apple is currently trading at 39 times trailing earnings and 32 times forward earnings, which means investors can buy this tech stock at a relatively attractive valuation. Of course, one might argue whether Apple deserves a 50x earnings multiple considering its slow pace of growth right now, but even if it trades at a relatively cheaper 40 times earnings after a couple of years, it could deliver 38% gains from current levels, giving investors a good reason to buy the stock right now.

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MacDailyNews Take: From Chauhan’s lips to Mr. Market’s ears!

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