Quick Analysis: Are Apple Shares Gaining Enough to Surpass the 52-Week Highest Price

Apple shares (NASDAQ: AAPL) are surging. In the ongoing week, the share price has jumped by 3.76% from $188.02 on Monday to $195.09 on Tuesday. One of the primary factors driving the current rise is the report that Apple may keep half of the subscription revenues from the forthcoming streaming service. The price of Apple averaged over the first four days of the ongoing week is $189.45. Let us check how this price compares with the highest weekly average price in last 52 weeks.

According to our 52-week analysis of Apple shares, the highest weekly average price was $226.41 during the 39th week of 2018. This price is 19% higher than that of the current week’s average price. Hence, the stock may not cross the $226 figure this week. But if the surge continues longer, Apple may break the record in a few weeks time.

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Why Needham Upgraded Apple Shares to Strong Buy – See the Revised Target

The investment banking and equity research firm Needham has upgraded the rating of the Apple (NASDAQ: AAPL) shares. The new rating is a “strong buy” upgraded from a “buy”.

Needham expects better than expected results from almost all services and products. The upgrade has come at a time when Apple is about to launch the TV streaming service. Probably, the analyst should have taken into account the potential value addition from the streaming service.

The price target has been revised to $225 from the earlier $180. Surprisingly the target is almost the same as the highest weekly average price of Apple in recent 52 weeks. The highest weekly average record was $226 in 52 weeks (culminating at 11th Feb 2019).

How Apple Shares Performed Against NASDAQ Composite in Last 5 Years

There are different benchmarks to compare and analyze the performance of a stock. NASDAQ Composite Index (IXIC) is one such. Let us check how Apple (NASDAQ: AAPL) has performed against the composite for the last 5 years.

From our report on the 5-year performance of Apple stock, here is the table displaying the comparison between AAPL and IXIC.

Year AAPL gains (%) Nasdaq Composite gains (%) Difference
2015 -3.01 12.51 -15.52
2016 12.48 3.73 8.75
2017 48.47 10.73 37.74
2018 -5.39 29.06 -34.45
2019 (till 02-11-2019) 7.87 -4.87 12.74

From the above table, you can see 2018 was not a great year for Apple. 2019 data has been encouraging so far. However, the price has to sustain the positive momentum to break the 2017’s market beating margin of 37.74%.

Despite Nike Shares’ 4% Fall on Thursday, Why 5-Year Returns Are Encouraging

After Nike’s (NYSE: NKE) Q3 revenue miss, the shares fell about 4% on Thursday (March 21). Markets tend to react emotionally in the short term. To analyze a stock, 1 day, 1 week or even 1 quarter is too short a term. Let us now have a look at the past 5 year annual returns of Nike to gauge the performance.

Below is a table showing annual gains of NKE shares. The table is a part of our 5-year report on Nike (NYSE: NKE).

Year Open ($) Close ($) Returns (%)
2014 37.18 46.01 23.75
2015 46.01 60.45 31.38
2016 60.45 49.75 -17.7
2017 49.75 62.04 24.7
2018 (till 10-15-2018) 62.04 74.99 20.87

As you can see from the above table, except during 2017, NKE has shown a strong performance in the last 5 years. The annual gains have been consistently above 20% for all the years except 2017.