Analyst: Apple Is Crashing, And Here's Why It's Time To Buy

Apple stock buy

Hedge-fund manager and Apple analyst Andy Zaky has made a case for buying Apple stock, which is currently trading at $640 a share, a 10 per cent drop from its recent heights.

Here’s his reasoning:¬†

  • The best time to buy Apple has historically been when analysts are bearish about it.
  • Apple is aggressively selling every iPhone 5 it makes.¬†
  • IDC and Gartner estimate Apple will sell between 160 million to 180 million iPhones in 2013.
  • Apple’s price-to-earnings ratio has stablized over the last six quarters, hovering around a level of 15. Zaky says that level “seems to be Apple’s centre of gravity.”
  • It’s likely that Apple’s shares are oversold, so there’s a lot of money that could be put back into the stock.

Zaky believes $615 is a floor for Apple stock, and that it will hit $1,000 next year.

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