Some of the most explosive opportunities can still be found in tech stocks this year, we said on January 10. Those included:
Apple (AAPL)
Morgan Stanley also believes Apple’s weakness was an opportunity.
The firm noted, “While near-term Product demand remains uneven (vs. Services outperforming), we believe this is captured in recent underperformance,” analysts at Morgan Stanley, reiterated an Overweight rating and $220 price target on the stock. Morgan Stanley believes that after 9 points of underperformance vs the S&P 500 in the last month, Apple shares are oversold, and they’d be buyers of weakness,” as noted by Investing.com.
JP Morgan also maintained its overweight rating on the stock, with a $225 price target.
Apple is also a top tech pick for Wedbush, which has a $250 price target. “In a nutshell, 2024 is the year for [Apple CEO Tim] Cook & Co. to show iPhone growth again and further monetize its golden installed base that Cupertino has built,” noted the firm.
Since January 10, Apple ran from about $184 to a high of $196.27. While it has since pulled back to $184, it could retest $196, even $200 again shortly.
Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) could test $200 this year, especially with the artificial intelligence (AI) boom, we noted on January 10. Since then, AMD ran from about $148 to a high of about $185. Now at $168.53, it’s still a strong opportunity.
The two types of financial statements, the balance sheet and the profit-and-loss statement, are at the heart of a sound fundamental analysis of any given company. But you must understand how to move beyond these two benchmark measurements to really understand how the company is doing. The easiest way to interpret a company’s results is by looking at the key ratios which are accepted in the financial community.
The rate of return (ROI) is among the most important of these ratios. This is calculated by taking the profit and dividing it by the investment. Yet this brings up a key question – what, exactly, is profit? Net operating profit, profit after taxes, profit before taxes – all could be profit. The same ambiguity applies to the word “investment”. Are we talking about total assets employed or merely equity? It makes a difference. It is important that a company makes the definitions of these terms clear and that it is consistent in reporting the numbers.
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