Since Monday, Apple Inc. (NASDAQ:AAPL) stock showed an amazing recovery with a 1.91% gain on Wednesday. The buying pressure came as soon as JPMorgan analysts Chatterjee forecasted a 30 million 5G iPhone SE sell in fiscal 2022.
AAPL is not a dirt-cheap stock right now as its PE ratio is still above the pre-pandemic level. Despite the recent decline in the share price, the company valuation and business fundamentals remain at the top.
The current P/E ratio shows an amazing recovery from the 4th October low of 24.76, aiming higher above 30.00 times. Moreover, it is above the level of June 2020, from where the stock price surged by more than 85%.
Is it safe to buy Apple stocks?
Apple stock provides a 35.88% annualised gain in 2021, where the current forecast for earnings per share is $5.73 in 2023, which is a significant increase from the previous prediction of $3.24 per share in 2021.
Technically, Apple stock is trading within a bullish trend where the current price is above the 100-day moving average.
The recent bullish rejection from the $167.39 signifies that bulls may regain the momentum to beat the current all-time high of $182.19. A break above the $182.19 level with a bullish daily candle will open rooms for testing the psychological $200.00 level.
On the other hand, a break below the $167.39 support level would increase the mean reversion possibility towards the dynamic 100 SMA and static $156.86 support level.
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