Shares of Apple
(NASDAQ: AAPL) are surging to all-time highs
Thanks to robust estimates for iPhone sales in 2020. And the company’s new 5G smartphones are a key reason for the optimism.
A recent research report released from The Taiwanese Daily Focus provides estimates for Apple iPhone sales.
Apple is expected to ship 200 million iPhones in 2020. And 60% of these smartphones are expected to be 5G phones (click here for the #1 way to profit).
That means Apple could sell 120 million 5G iPhones this year.
The firm expects that Apple will roll out four new 5G phones
in September. The forecast suggests that the bulk of Apple’s sales will occur
in the final four
Apple stock surged 86% in 2019. And those gains have been extended early this year – with shares now trading at $310.
Today the company’s total market valuation now stands at nearly $1.4 trillion.
Those impressive gains occurred despite slowing sales and flat profits. After a slow 2019…
Investors are expecting a blockbuster year in 2020.
Today, Apple stock trades at 24
the consensus EPS estimate for 2020. That’s a sizable premium to the S&P
500 with a forward P/E of 18. And over the last decade, Apple typically has
traded at a price-to-earnings multiple of 14.
That means the stock is overpriced relative to the stock market and its historical valuation.
Wall Street analysts expect strong results this year.
Apple sales are expected to grow by 6%. And aggressive Apple stock buybacks mean that EPS could grow by 10%.
In fact, analysts at Jefferies, Needham & Co. and Wedbush Securities have all raised their share price targets on Apple stock to $350.
$350 may prove unattainable for Apple shares. Meanwhile, today’s rich valuation for the stock could make it difficult to see big gains in 2020.
Apple will report earnings on Jan. 28. I’ll be watching the company’s results – and taking a close look at the outlook for 2020.
The coming year will be a good year for smartphones. And Apple should lead the way with its new 5G iPhones.
However, I’m not going to buy shares of Apple. Instead, it makes more sense to secure shares of stocks that are supplying key components for the new iPhones.
That’s why I’m hosting this week’s 5G Profit Summit.
Yours in Profits,