Apple's Valuation Surpasses Entire US Energy Sector

Apple is now valued more than the entire US energy sector, according to analysts at Bank of America Merrill Lynch.
The tech giant closed Thursday with a $1.17 trillion market cap, maintaining its position as the world’s most valuable public company.

In contrast the S&P 500 Energy index closed with a $1.13 trillion market cap, dragged lower by ExxonMobil, Chevron, and ConocoPhillips.

The iPhone-maker’s stock surged after impressing investors with its fiscal fourth-quarter earnings. Apple topped Wall Street’s estimates for both revenue and profits as its wearable products and online services offset slowing iPhone sales.

The company is up about 8% since the October 30 report and posted a record-high close Wednesday.

Despite Apple’s strong momentum through 2019, BAML analysts said it still has room to grow.

The tech giant is “on course for 82.6% gain” through the end of the year, the team led by chief investment strategist Michael Hartnett wrote.
The company traded at $263.87 at 9:05 a.m. ET Friday, up roughly 0.47% from Thursday’s close.

Apple has 27 “buy” ratings, 14 “hold” ratings, and seven “sell” ratings from analysts, with a consensus price target of $255.83, according to Bloomberg data.

One factor that will determine whether Apple meets or surpasses that lofty figure is the U.S.-China trade war. Despite positive progress in talks between the two nations this week, there are more tariffs looming on the horizon.

On December 15, a 15 percent tax will be placed on many of Apple’s hardware components—including those for its iPhone, iMac, and Watch.

As such, the company is unsurprisingly seeking exemptions from these tariffs. It argues that its products do not directly influence the Chinese economy and should therefore not be taxed as such. However, it remains to be seen if Washington will approve the request.

Regardless, Apple is on quite the roll right now. Considering that the entire U.S. energy sector can’t afford to buy it, the company seems to be in a good position. Those who purchased Apple stock prior to this year’s stock boom are also doing well.

Since Apple’s IPO in 1980, the company has returned 51,031 percent on investments. If nothing else, this serves as a good reminder to keep looking for the tech sector’s next unicorn.

November 15, 2019