Apple Inc. briefly traded at all-time highs to start the year before pulling back with the overall markets. Having bounced off the lows over the past two days, is it time to head for the exits?
A lot of growth and technology stocks are still trading “at valuations that don’t make sense for their growth prospects,” Gilman Hill Asset Management’s Jenny Harrington said Wednesday on CNBC’s “Fast Money Halftime Report.”
Apple’s earnings growth is expected to be about 3 percent in 2022 and 5 percent in 2023, according to Harrington: “The multiple on something that grows in that range doesn’t make sense,” she emphasized.
Apple is currently trading with a price-to-earnings ratio of about 31, according to data from Benzinga Pro.
Harrington acknowledged Apple is “an amazing company,” and made it clear she doesn’t think “it should go down a lot.” However, she doesn’t expect the stock to continue to outperform or be “a huge grower” from current levels.
Harrington would be a seller of stocks with stretched valuations into strength. She says investors will need to move away from evaluating tech as a sector and focus more on picking individual stocks in 2022.
