Apple (NASDAQ: AAPL) stock price plummeted after hitting an all-time high of $268. The investors are blaming broader market volatility for the AAPL share price retreat. Fortunately, market reports are supporting bullish sentiments.
In addition, APPL share price is trading at attractive valuations despite a share price rally of 66% since the beginning of this year.
Apple stock price is currently trading around only 19 times to earnings compared to the industry average of 20 times. Its price to sales ratio also remains in line with the industry average. Market pundits are expecting Apple stock price to trade around $300 in the coming months.
Bulls are Presenting Several Reasons for Bullish Sentiments
After experiencing sluggish revenue growth in the past few quarters, Apple turned things around with its new revenue growth strategies. The company has successfully created new revenue channels to offset the impact of iPhone revenue. Fortunately, the launch of the iPhone 11 is likely to enhance its iPhone revenue in the following quarters.
This is because the iPhone 11 sales have exceeded expectations and the company is forced to double its production.
The analysts are forecasting almost 190M+ iPhone sales for FY20. In addition, Apple’s AirPods Pro demand has already surpassed estimates, pushing assembly partners to increase supplies. The shipments for the AirPods line are likely to double this year.
On the other hand, the company has generated high double-digit revenue growth from non-iPhone revenue. It’s wearable revenue came in at $6.5B in the latest quarter while services revenue hit $12.5 billion.
Analysts Expect Upside for Apple Stock Price
The market pundits are highlighting a bullish outlook for Apple and its share price. The majority of analysts are expecting AAPL share price to hit $300 level in the coming days.
The revenue outlook of $84 billion for the first quarter is among the catalysts for Apple stock price. The company also forecasts high double-digit growth in earnings. The potential increase in cash returns for investors could also offer support to the share price.