We recently published a list of 10 Mega Cap Stocks Gaining Bullish Momentum This Week. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other mega cap stocks gaining bullish momentum this week.
The S&P 500 index started the week with a bang after staying under pressure for a few days. There was a realization that Wall Street may have overestimated the impact of tariffs. Once the dust settles, the market will continue to go higher, just like the US economy which continues to grow despite challenges.
When the broader market corrects itself due to uncertainty, such as the one brought about by Trump’s tariff wars, mega-cap stocks also get affected. This provides investors, especially the ones that invest at regular intervals, to take another bite of these impressive stocks. The same situation happened during the last week, and we believe that after Monday’s impressive recovery, the trend is about to reverse.
Mega cap stocks like the ones in our list have driven the market in recent months and are therefore likely to be the ones leading it again. We decided to come up with the top 10 mega-cap stocks in the S&P index that have lost a considerable chunk of value in the last month and are now trading at a discount, a valuation gap that could quickly be recovered during this week’s trading.
To come up with the list of 10 oversold S&P 500 Mega-Cap Stocks To Trade This Week, we only looked at stocks with a market cap of at least $200 billion that have lost the most value in the last month.
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) operates as a manufacturer, designer, and marketer of personal computers, wearables, smartphones, tablets, and accessories. The company provides iPhone, iPad, Mac, and wearables. It also offers AppleCare support and cloud services.
Like any other good company, Apple stock continues to trade at a ridiculous valuation despite a 10% downturn in price within a month. According to a recent report published by Morgan Stanley, Apple is among a handful of stocks that are ideally placed to sustain an economic downturn. However, the fact that it is also expensive makes it a tough decision for long-term investors.
There are quite a few things that should soothe investors when talks of a bubble come around. A major difference between the current high valuations and the ones during the dot-com bubble is that valuations then were based on non-financial metrics like viewers and clicks. Today’s valuations are much more solid as they are based on the actual earnings of the companies.
Moreover, the AI revolution is bringing about a change way more significant than the internet. And Apple (NASDAQ:AAPL) is at the forefront of it. The company is considering adding cameras to its smartwatches so that they can be equipped with Visual Intelligence features. The same could be added to AirPods soon.
Apple (NASDAQ:AAPL) is behind other tech companies when it comes to AI innovation, but it has the advantage of a vast ecosystem that it can use to its advantage. Investors may want to do the same and back this winner before it regains the lost share value.
Overall, AAPL ranks 7th on our list of mega cap stocks gaining bullish momentum this week. While we acknowledge the potential of AAPL as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
