Apple Today

AAPL

Apple

$213.36 +0.92 (+0.43%)

52-Week Range$169.21

▼

$260.10

Dividend Yield

0.49%

P/E Ratio

33.23

Price Target

$234.95

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With the S&P 500 and the Nasdaq-100 indexes now sitting at new all-time highs relatively undisturbed, it makes sense to see some of the best companies in the United States economy start to go on a sort of “meltdown” mode for the coming months and quarters. This is exactly where the best opportunity will be for those investors who know what they are looking for.

More speculative growth names in the sector have stolen the spotlight from the fundamentally sound stocks. This divergence in attention (and capital) only creates a gap to be filled, and that is where patience will come into play, lest a sound portfolio fall victim to the usual fear of missing out that prevails during all-time high cycles.

One of the best names to fit this description, both in terms of gaps to be filled and upside opportunities to be had, is Apple Inc. NASDAQ: AAPL, a darling of the industry and culture alike. Apple is a leader in many areas of technology, from hardware to software, across the global economy, to the extent that it has almost become a commodity in itself, and one that investors will likely hold much better than replace with uncertain growth names.

This is where price action becomes one of the most important indicators for investors to consider in their stock selection process. While the technology-focused Nasdaq-100 is now sitting on all-time highs, shares of Apple have stood at only 82% of their 52-week high levels, an underperformance that might raise some eyebrows in the investment community.

A gap of nearly 20% is formed not because of declining fundamentals or any issues with the company or the brand, but due to a root cause that arises in every top cycle. More investors now feel like they missed the boat on semiconductor and artificial intelligence names, seeing peers boasting about their gains on social media and the like.

For this reason, few in the market want to put their money to work in Apple, even though it is the best decision today. The stock market often rewards patience, and that is what it takes to hold and profit from the current gap in Apple stock, which is exactly where savvy investors will find this helpful information.

As investors will discover, many participants are coming from the so-called “smart money” corner of the market that’s already taking advantage of this opportunity. These factors can (and should) act as a pillar of strength for prospective buyers to lean on with a multi-quarter time horizon in mind, especially with all of the tail risks now brewing in the economy.