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Apple to Hit $4-Tn Market Cap in 2024? ETFs in Focus
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Apple Inc. (AAPL - Free Report) has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). Though the stock might see some rough trading in the near term due to rising rate worries, the long-term prospects look bullish.
According to Fairlead Strategies, Apple’s latest breakout confirms likely upside in the coming years, as quoted on Business Insider. Let’s find out the factors that could lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 37% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 37% increase from the current stock price. Achieving this target would push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, founder of Fairlead Strategies, detects the resumption of the uptrend that “preceded the 2021-2022 trading range”. This suggests continued positive momentum for Apple's stock in the short term. Absence of counter-trend signals further supports the rally.
Apple to Touch $254 by End of 2024?
Stockton projects that the technical price objective of $254 per share could be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, has produced excitement among users and investors. Priced at $3,499, the headset is set to be released early next year, contributing to the positive sentiment surrounding Apple.
Near-Term Threshold Within Limits
As of now, Apple's market valuation stands at approximately $2.96 trillion. To cross the important $3 trillion mark, the stock price needs to reach $190.73, which is within reach of the current levels. Such a landmark would further strengthen Apple's position as a global company.
Notably, the current Zacks Consensus Estimate for earnings for the June quarter is $1.18 per share. The Most Accurate Estimate is $1.22 per share, resulting in an Earnings ESP of +3.39%. This is a positive sign for the stock.
Are ETFs Better Bets?
Investors intending to follow the above-said thesis but still wary of the slowing sales of Apple as well as stiff competition in the smartphone and iPad segments may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF (IYW - Free Report) – AAPL takes the second spot with 19.44% weight. The fund has a Zacks Rank #1 (Strong Buy).
Select Sector SPDR Technology ETF (XLK - Free Report) – AAPL holds the second spot with 23.38% weight. The fund has a Zacks Rank #1.
Vanguard Information Technology ETF (VGT - Free Report) – AAPL occupies the first location with 22.31% weight. The fund has a Zacks Rank #1.
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Apple to Hit $4-Tn Market Cap in 2024? ETFs in Focus
Apple Inc. (AAPL - Free Report) has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). Though the stock might see some rough trading in the near term due to rising rate worries, the long-term prospects look bullish.
According to Fairlead Strategies, Apple’s latest breakout confirms likely upside in the coming years, as quoted on Business Insider. Let’s find out the factors that could lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 37% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 37% increase from the current stock price. Achieving this target would push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, founder of Fairlead Strategies, detects the resumption of the uptrend that “preceded the 2021-2022 trading range”. This suggests continued positive momentum for Apple's stock in the short term. Absence of counter-trend signals further supports the rally.
Apple to Touch $254 by End of 2024?
Stockton projects that the technical price objective of $254 per share could be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, has produced excitement among users and investors. Priced at $3,499, the headset is set to be released early next year, contributing to the positive sentiment surrounding Apple.
Near-Term Threshold Within Limits
As of now, Apple's market valuation stands at approximately $2.96 trillion. To cross the important $3 trillion mark, the stock price needs to reach $190.73, which is within reach of the current levels. Such a landmark would further strengthen Apple's position as a global company.
Notably, the current Zacks Consensus Estimate for earnings for the June quarter is $1.18 per share. The Most Accurate Estimate is $1.22 per share, resulting in an Earnings ESP of +3.39%. This is a positive sign for the stock.
Are ETFs Better Bets?
Investors intending to follow the above-said thesis but still wary of the slowing sales of Apple as well as stiff competition in the smartphone and iPad segments may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF (IYW - Free Report) – AAPL takes the second spot with 19.44% weight. The fund has a Zacks Rank #1 (Strong Buy).
Select Sector SPDR Technology ETF (XLK - Free Report) – AAPL holds the second spot with 23.38% weight. The fund has a Zacks Rank #1.
Vanguard Information Technology ETF (VGT - Free Report) – AAPL occupies the first location with 22.31% weight. The fund has a Zacks Rank #1.