It’s been one heck of a year for Apple (AAPL)…
Not only is its stock up almost 55% in 2019, but as I write, the consumer-electronics giant has reclaimed its top spot as the most valuable company in the world.
Most investors would view that as a bad thing. New highs tend to make folks feel like they missed it… like the biggest gains are behind them. But with Apple, that’s simply not the case.
History says the rally we’ve seen should continue. In fact, a 25% gain is possible over the next year.
Let me explain…
A near-55% rally in less than a year is impressive… especially for the world’s most valuable business. And it might seem counterintuitive to buy after such a big move. But that gut feeling is wrong.
The simple fact is that new highs often lead to newer and higher highs. We want to follow the trend… And new highs typically show that the trend is strong.
That’s exactly the case here. We’ve seen 18 other new 52-week highs for Apple since 1990. And 72% of the time, those new highs led to profits over the next year.
Now, it’s setting up to happen again. Apple just hit a new 52-week high. Take a look…
This stock has had a massive rally since December. And if you’re one of Apple’s investors, history says you can expect the uptrend to continue.
Since 1990, buying shares of Apple after similar moves has been a good idea. It would have even outperformed a simple buy-and-hold strategy for the past three decades. Take a look…
Simply buying and holding shares of Apple has been an incredible bet… returning 19% a year since 1990. But by waiting to buy after new 52-week highs, you can do even better.
Similar instances led to 12% gains in six months and a solid 25% gain over the next year. Those are huge returns and solid outperformance. And it means owning Apple today is a smart idea.
Apple is back at the top. It’s back to being the world’s largest company by market capitalization. And history says it will likely get even larger over the next year.
So if you’re looking for a high-quality blue chip to add to your portfolio, this is one to consider… History says now is a great time to act.
Marc Chaikin built the system that isolated NVDA before it became the best-performing stock of 2023. Click here to get his latest buy. More here.
Source: Daily Wealth