The stock is now trading just around $400 per share and is down 27.5% this year alone. Is there any hope for Apple investors?
We talk numbers with JC O'Hara, Chief Market Technician at FBN Securities, and Patricia Edwards, Principal and Chief Investment Officer at Trutina Financial.
In an interview with the Talking Numbers blog, Edwards says Apple's competitive edge has diminished significantly, with Samsung and other competitors making inroads in Apple's traditional advantage of design and innovation.
On the positive side for Apple, Edwards believes the stock's intrinsic value may be higher than it's currently trading. At the moment, it's priced at nine times next year's earnings. Plus, 38% of the stock is comprised of cash on the balance sheets. With a 3% dividend yield, it's also giving a better return than Treasuries, though not as much as it did before.
What could save Apple's stock? Edwards lists three things:
- New and improved iPads and iPhones
- iPhone growth in emerging markets
- Value investors get attracted to the stock
The charts, however, say there's more room on the downside. "This stock has been forgotten about," says O'Hara. "There's no reason to buy it right here."
To see O'Hara's charts and to hear more of Edwards' fundamental analysis, watch the video above.