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) 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.
