NEW YORK (TheStreet) -- Shares of Apple
(AAPL - Get Report) continued their incredible run Monday, closing at $95.97, up more than 2% during the trading session.
Apple stock is now up 20% on the year to date and are up almost 30% since the end of April. Even more remarkable, since reaching its (split-adjusted) 52-week low of $55.55 last June, Apple stock has surged more than 73%.
Investors who've taken the leap of faith during all of last year's doom and gloom have done well. The repeated trumpeting of Samsung
(SSNLF) and Google
(GOOG) killing off Apple has been muzzled. But with as much as 73% gains on the line, investors are getting nervous, which is understandable. But it's not time to lose faith.
>>Tesla Motors Q&A: Batteries, Superchargers, Gigafactory and More
>>Why Goldman Sachs Thinks Netflix Is Worth $590 a Share
As Apple shares demonstrated Monday, this momentum has only begun to pick up steam. With Apple in the midst of a $130 billion capital redeployment plan, which it expects to complete by the end of 2015, there is plenty of room for the share price to run in the next 18 months. That's assuming CEO Tim Cook doesn't surprise investors
with another dividend and/or share buyback increase.
The other thing is, despite the recent surge in share price, there is plenty of pent-up demand for the stock. While citing data from Morgan Stanley
, a Forbes article
noted that Apple's institutional ownership remains underweight when compared to other large-cap companies in the S&P 500
. Analysts aren't citing this. But let's not pretend this important tidbit is not material to their bullishness.
This means that investors who are still waiting for a better entry point are doing so at their own peril. Once the institutions begin to pile into the stock, as I suspect is happening already, shares are poised to break their pre-split all-time high of $705 (or $101).
Apple, which received yet another price target increase on Monday, appears revived. While citing higher-than-expected iPhone 6 sales during the third quarter, Analyst Andy Hargreaves at Pacific Crest raised his price target on Apple from $93 to $100.
Apple shareholders rejoiced. I've echoed these sentiments on numerous Apple commentary. But Hargreaves is playing it too safe. From Monday's closing price, this new target represents only a 4% premium. The way I see it, Hargreaves is avoiding a limb that doesn't exists. Not to mention, he's late to the party.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts