Apple Shares Bounce Again

Apple Inc - All Kinds of Apples

The stock is up today, but for how long?

Apple Inc (AAPL) shares are up 2% today, trying hard to get to the $550 level.  Everyday that passes the 52 week range improves for Apple as it moves further away from its 2012 $700 price.  Can the stock return to greatness?

The Architect at TrendsandReturns.com had the right idea of bottom fishers finally snapping up AAPL thanks to its recent decline and attractive P/E:

Since the start of the year Apple (AAPL) is down 5% and 6 to 7% since the China Mobile (CHL) deal was announced.  Thanks to the decline I believe buyers will come out and snap up Apple shares.

Apple's P/E is down to 13.45.  Consider that Netflix (NFLX) has a P/E of 279, Facebook (FB) at 121, and Twitter (TWTR) at WTF.  A better comparison for Apple would be Google (GOOG) who's PE clocks in at 32.5.  P/E or Price-to-Earnings ratio may not get the attention it used to but for a lot of big and smart money it does.  My speculation on a reduced P/E is going to entice investors to go long on Apple before the Q1 earnings are delivered on Jan 27th.  

However AAPL is destined to be range bound until we hear earnings on Jan 27th.  Apple needs a good conference call to move past the $550 then $575 range.  Despite the amazing P/E Wall Street will not move AAPL shares until it believes there is respectable earnings growth.  

The best analysis of AAPL's stock was done by Jim Cramer yesterday (see below).  Long term the analyst Jim is talking up has a TP of $792 on AAPL:

 

Bottom line: AAPL may be at a bottom but until we earnings at the end of the month the stock is range bound.