What correction? Apple stages a comeback
Apple (AAPL) investors rejoice! The correction is over!
Shares of the gadget maker are now down just 8.5% from their all-time high notched in April - ending what was a somewhat painful period for Apple investors. Back in July, Apple's stock first dropped 10% from their high as investors feared Chinese demand - and shares were down more than 20% at their worst point during the summer.
That's in the past now. The afterglow of the company's most recent quarter results - which came in better than expected - has put the stock back on track. Shares of Apple are up $2, or 1.7%, Tuesday to $123.16. That's an 11.5% gain this year - which beats the Standard & Poor's 500's 2.5% year-to-date gain.
Apple put many investors' worries about the maker of smartphones to rest when it reported quarterly results on Oct. 27. Shares of the company have shot up 7.4% since that Oct. 27 earnings report - topping the 2.2% gain by the Standard & Poor's 500 during that same time.
Here's another positive sign for Apple - shares are back trading above their 200-day moving average. The 200-day moving average measures the stocks average price over the past 200 trading days. When a stock crosses above that level, traders see it as a bullish sign. Apple's 200-day moving average is $121.85. Having the Federal Reserve on hold - which makes a $650 smartphone more affordable for people - helps, too.
Bullish analysts who have stood by the stock continue to cheer it higher. Analysts see the stock being worth $149.42 a share in 18 months, which would be 21% upside. Wall Street estimates call for the company earning $3.26 a share in the current quarter, which would be up 6.5% from the same period a year ago.
But while the correction is over - that doesn't mean it's off to the races for the stock again, some say.
Abhey Lamba, analyst at Mizuho who has corrected forecasted the stock's movements as of late, has pointed out slowing growth of smartphones will continue to make it harder for the stock to outperform. Lamba rates the stock a "hold" and says it will be worth $125 in 12 months - indicating not much upside from current levels.
Follow Matt Krantz on Twitter @mattkrantz