Apple Inc. (NASDAQ:AAPL) investors may be in store for one of the stock’s best months to date this October, as events conspire to drive the firm’s stock price ever higher. The firm is just coming away from an incredibly successful iPhone 5 launch, and is looking forward to the launch of a new product, probably a smaller iPad, in the coming month.
According to data from a Topeka analyst, October has been the highest gain month for Apple Inc. (NASDAQ:AAPL) shares in the last nine years running. There is little to suggest that that pattern should change this year. In fact, it looks like Apple might outperform expectations. The same report put a price target of $1,111 on the firm for the next twelve months.
Several events that could have a resoundingly positive effect on the company’s shares are expected in October. The first of these is a rumored event coming up for the company. This is most likely a launch, according to the rumor mill, for a smaller and cheaper iPad model, so far dubbed the iPad “mini”.
There are other possibilities however, and some combination of these might be launched in the coming thirty days. Apple is expected to release a 13 inch version of its extremely well received Retina MacBook Pro. Engineering problems were cited as the reason for the lack of such a device last June. The company’s line of All In One iMac desktops is also due for an update, the delay in that update has led many to speculate on a major update for the product line.
Product launches are usually extremely important for Apple Inc. (NASDAQ:AAPL) investors. When the company seems ready to launch a completely new product line, such as, despite reservations in calling it that, the iPad mini, the importance of the event is likely to seem even greater.
If there is anything in Apple’s calendar that has brought about more share surges than product launches, it is quarterly earnings reports. Apple has, despite the most recent numbers, a propensity to completely blow past the expectations of investors and analysts when announcing its earnings. Apple will announce its results for this quarter on October 24.
On top of these two major events, Apple Inc. (NASDAQ:AAPL) is, as I write, raking in money from the successful launch of the iPhone 5. Despite reservations from many that it was predictable, the verdict reached by many who paid attention to the rumors and none who ignored them, it is selling incredibly fast. The device still accounts for a large proportion of the firm’s profits.
Apple’s shares may have performed well according to the ghosts of Octobers past, but that does not make this month a slam dunk from the company. There are still risk factors that could cause trouble for investors. It must be remembered that Apple does not always succeed at product launches. The death of Ping, the firm’s social network, last week, is demonstrative of that, if nothing else.
The company is also still involved in legal disputes all over the world. Any misstep in those proceedings could lead to a sharp pullback by investors. As the most valuable company in the world, and one of the most innovative, Apple operates in a space that is slightly uncomfortable for many investors. That leaves the firm vulnerable to reactionary sell offs.
Apple Inc. (NASDAQ:AAPL) still trades at a reasonably low multiple, particularly compared to the other companies on the cutting edge of the tech industry. Its fundamentals are incredibly strong, and the events taking place this month seem favorable.
Apple Inc. (NASDAQ:AAPL) may be in for it biggest month ever. Basing such a hope on a sample size of nine for a firm like Apple is not sound math, and it’s certainly not a sound investment strategy.
Apple Inc. (NASDAQ:AAPL) shares are currently closed at 661.36 today. We’ll be watching closely to see how the firm’s events and earnings reports impact its share price this month.