Apple Inc (AAPL)

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Apple Makes BofA List of Stocks That Thrive Amid Inflation
By: TheStreet | May 17, 2022

• The roster contains S&P 500 companies whose relative performance has a strong positive relationship to BofA’s inflation indicator.

As you’ve likely noticed at the grocery store and gasoline pump, inflation is roaring. Consumer prices jumped 8.3% for the 12 months through April.

So which stocks can get you through rising inflation? Bank of America created a list of possibilities.

The roster contains S&P 500 companies whose relative performance has a strong positive relationship to BofA’s inflation composite indicator. The inflation statistics go back to 1975, and BofA excluded stocks with less than 20 years of data.

The list includes:

* * *

Apple

Morningstar analyst Abhinav Davuluri gives Apple a narrow moat. He puts fair value for the stock at $130, compared to its recent quote of $149.17.

“Apple reported fiscal second-quarter results that came in ahead of our estimates, despite supply chain constraints and the ongoing chip shortage,” Davuluri wrote in a commentary.

“Demand for the firm's latest iPhone 13 and MacBook Pro drove record iPhone and Mac revenue for the March quarter.”

Going forward, “we remain positive on Apple's ability to extract sales from its installed base via new products and services,” Davuluri said. “However, management expects June quarter revenue to be $4 billion-$8 billion lower than usual…. We believe the recent stretch of strong revenue growth will be difficult to maintain as Covid-19-related Mac and iPad demand subsides.”

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