On Wednesday, Apple Inc. (NASDAQ:AAPL) published a report saying that it expects five million iPhone pre-orders from China amid initial high demand for the iPhone 13.
The South China Morning Post said Wednesday there had been at least five million iPhone 13 orders in the eight days since the Technology giant unveiled the smartphone. The news outlet also said Chinese e-commerce platform JD.com (HKG:09618) accounted for at least three million iPhone 13 pre-orders.
Apple shares surged slightly by 1.25% following the report for a year-to-date gain of 12.22%. As a result, the stock is now up nearly 30% over the last 12 months, meaning it is still underperforming the S&P 500 Index, which is up 32.66%.
The stock has also plunged more than 7% in the last two weeks amid rising China risk.
Why buy Apple shares now?
From an investment perspective, Apple’s recent share price decline of more than 7% has pushed its valuation multiple lower, making it an attractive investment opportunity for value investors.
The stock now trades at a P/E ratio of 28.44 and a forward P/E of 25.08. Moreover, analysts expect the iPhone maker’s earnings per share to grow at an average annual rate of about 19.61% over the next five years.
Therefore, the stock could still be a compelling option for growth investors as it continues to create more avenues for generating service revenue.
Apple shares seem poised for a rebound
Technically, the AAPL stock appears to have recently bounced off the trendline support line, just above the 100-day moving average. Moreover, the stock also seems to have recovered to avoid falling to the oversold conditions
