The Apple Comeback Will Be Better Than the Setback

Key Points

• Apple stock now offers a significant price-performance gap compared to the Nasdaq-100 and S&P 500, allowing investors to profit at low risk.
• Fundamentals are as solid as ever, with Wall Street calling for double-digit upside.
• Earnings growth justifies a new multi-billion-dollar positioning by institutional buyers.

With the S&P 500 and the Nasdaq-100 indexes now sitting at new all-time highs relatively undisturbed, it makes sense to see some of the best companies in the United States economy start to go on a sort of “meltdown” mode for the coming months and quarters. This is exactly where the best opportunity will be for those investors who know what they are looking for.

More speculative growth names in the sector have stolen the spotlight from the fundamentally sound stocks. This divergence in attention (and capital) only creates a gap to be filled, and that is where patience will come into play, lest a sound portfolio fall victim to the usual fear of missing out that prevails during all-time high cycles.

One of the best names to fit this description, both in terms of gaps to be filled and upside opportunities to be had, is Apple Inc. NASDAQ: AAPL, a darling of the industry and culture alike. Apple is a leader in many areas of technology, from hardware to software, across the global economy, to the extent that it has almost become a commodity in itself, and one that investors will likely hold much better than replace with uncertain growth names.

Where Apple Stock Stands in Terms of Price

This is where price action becomes one of the most important indicators for investors to consider in their stock selection process. While the technology-focused Nasdaq-100 is now sitting on all-time highs, shares of Apple have stood at only 82% of their 52-week high levels, an underperformance that might raise some eyebrows in the investment community.

A gap of nearly 20% is formed not because of declining fundamentals or any issues with the company or the brand, but due to a root cause that arises in every top cycle. More investors now feel like they missed the boat on semiconductor and artificial intelligence names, seeing peers boasting about their gains on social media and the like.

For this reason, few in the market want to put their money to work in Apple, even though it is the best decision today. The stock market often rewards patience, and that is what it takes to hold and profit from the current gap in Apple stock, which is exactly where savvy investors will find this helpful information.

As investors will discover, many participants are coming from the so-called “smart money” corner of the market that's already taking advantage of this opportunity. These factors can (and should) act as a pillar of strength for prospective buyers to lean on with a multi-quarter time horizon in mind, especially with all of the tail risks now brewing in the economy.

The Market’s Take on Apple Stock Today

Even though Apple has underperformed the indexes and many other speculative peers in technology, Wedbush analyst Daniel Ives was willing to reiterate his Outperform rating on Apple stock as of mid-June 2025. This time, he also placed a $270 per share price target on the company.

This view and valuation would not only call for Apple stock to reach a new 52-week high but also imply an additional upside potential of up to 27% from its current trading price, a rare occurrence for a company with a $3.2 trillion market capitalization.

Whether it is the price gap, market share, or the exciting innovations coming from Apple itself, there are more reasons to consider this price a likely outcome in Apple's future, and some are already acting on this lucrative situation.

As of late June 2025, institutional buyers from Swedbank decided to boost their holdings in Apple stock by 2.4%. While this may not sound like much on a percentage basis, the addition took their stake to a new high of $4.3 billion today, signaling increased institutional interest as Apple is set to reclaim a new 52-week high in the coming months.

Not only do the technical factors favor Apple’s rise, but also the fundamentals. Wall Street analysts now expect Apple to report up to $2.34 in earnings per share (EPS) in the first quarter of 2026, representing a jump of up to 42% from today’s reported $1.65 in EPS.

As many investors know, where EPS growth goes, so does the stock price performance, therefore laying the foundation for Apple to reach (and even exceed) the upside potential now being called by Daniel Ives. As is always the case, the market itself is still willing to pay a premium valuation for Apple stock, and for good reason.

By trading up to 56.6x in a price-to-book (P/B) multiple, Apple is now way ahead of the computer sector’s average 7.1x valuation multiple. Because of its brand and technology moat, Apple commands a steady premium over peers, and the market is often right about overpaying for the names it expects to outperform, but only the patient will reap the rewards here.