Apple Set to Post Strong 2022 Returns

Apple Set to Post Strong 2022 Returns

Dow component Apple Inc. (AAPL) sold off in Tuesday’s session despite a widely publicized Bank of America Securities upgrade. The contrary price action suggests the stock is overbought and in need of a pullback, following a 15% 8-day buying spike into Monday’s all-time high at 182.13. The tech icon has been the strongest performer in the venerable index this month, defying broad-based volatility triggered by the Omicron outbreak in Southern Africa.

The stock is underweight compared to the SP-500 index, raising the potential for further analyst revisions when the calendar flips into 2022.  Looking further ahead, excitement should build in reaction to “Apple VR”, an augmented reality/virtual reality headset that could be released as early as the fourth quarter, or the start of 2023. That product should command a sales premium compared to Meta Platform Inc.’s (FB) Oculus system while giving the struggling VR segment a much-needed boost.