With the iPhone celebrating it’s 10th anniversary this year, the next model from Apple is looming and should be announced and released this fall. The company’s stock has been steadily rising for the past few months, even hitting $156 a share, setting a record for a new all-time high. Can the 10th anniversary iPhone push the company over the trillion-dollar mark? At least one analyst believes that within the next 12 months Apple will become the first trillion-dollar company in the world.
Through MacRumors, Brian White, an analyst, released a new research note calling Apple one of the worlds most under appreciated stocks. Apple is currently sitting at a P/E ratio of 16.9. Amazon has a P/E ratio of 183. That shows how under appreciated Apple is. White believes that shares of the iPhone maker could surpass $200 a share, taking them over the threshold needed to take the trillion-dollar crown.
During the summer of 2013, Apple stock bottomed out. But then in the spring of 2015 it had a strong rally. White believes that when the stock bottomed out in May 2016, it set Apple up with the fall release of the iPhone to have a huge bounce back, reaching a price target of $202.00.
Shares may rise in the upcoming weeks and months, however, it might be a little harder for Apple to reach the trillion-dollar cap than White thinks. Apple has an ongoing program for share repurchasing. In May, Apple indicated that it was going to increase its limit on share repurchasing from $175 billion to a whopping $210 billion. As of right now, there are 5.4 billion outstanding shares. That means that if Apple’s stock hits $185, it will likely surpass the trillion-dollar mark.
The iPhone 8 is the key. It could be the catalyst needed to send Apple’s stock surging. The new phone is expected to be the biggest refresh in the iPhone ever seen. Right now, the pool of people using an iPhone is at an all time high, and the iPhone 8 could be a leap forward larger than anyone expects technology-wise. It is expected to come with an OLED edgeless display, an even more advance camera, faster than ever with more RAM, better battery, including wireless charging, and so much more. There is even talk that there will be no physical home button, allowing for an even larger screen. It will be exciting to see what Apple has in store for the iPhone 8 and the push to a trillion-dollars.
What do you think? Can Apple surpass the trillion-dollar mark? Share your thoughts in the comments below.
By Cletus Dillwood
Photo Courtesy Apple