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After a strong rally in the first seven months of 2023, shares of Apple (
NASDAQ:AAPL
), Meta Platforms (
NASDAQ:META
), and Tesla (
NASDAQ:TSLA
) cooled a bit in August. Apple stock fell about 9% month-to-date, while Meta and Tesla stocks decreased by 10.4% and 10.9%, respectively, during the same period. Despite the pullback, analysts are optimistic about Meta and Apple stock. However, analysts remain sidelined on Tesla stock.
Against this backdrop, let’s delve into these mega-cap stocks.
What is the Apple Stock Forecast?
The recent weakness in Apple stock followed its
third-quarter financial results. Although its
earnings came ahead of the Street’s forecast, the decrease in iPhone, iPad, and Mac sales irked investors. The solid momentum in its Services revenue and a growing installed base provide a solid platform for long-term growth, notwithstanding the possibility that macro uncertainty may continue to pose challenges.
Further,
Citi analyst Atif Malik sees the launch of the iPhone 15 as a catalyst for Apple stock. The analyst reiterated a Buy on AAPL stock on August 16. In addition, his price target of $240 implies 34.37% upside potential from current levels.
Overall, Wall Street is cautiously optimistic about
Apple stock. It has received 22 Buy and eight Hold recommendations for a Moderate Buy consensus rating. At the same time, analysts’ average price target of $208.13 implies 16.53% upside potential from current levels.
Is Meta Stock Expected to Rise?
While there are no company-specific reasons for the recent pullback, profit booking after the solid rally in Meta stock may be to blame. Despite the current decline, Meta stock is still up about 137% year-to-date. Nonetheless, analysts see a significant upside in Meta stock from current levels.
The company’s
focus on cost reduction and improving its advertising backdrop keeps analysts bullish on Meta stock. On August 21,
Wedbush analyst Scott Devitt initiated coverage of Meta stock with a Buy and a price target of $350, implying 22.59% upside potential.
The analyst expects Meta to gain from the recovery in digital advertising, which will drive its revenue and
earnings. Moreover, improving efficiency will cushion its margins.
With 40 out of 42 analysts recommending a Buy on
Meta stock, it sports a Strong Buy consensus rating. Analysts’ average 12-month price target of $377.27 shows 32.14% upside potential.
Is Tesla Stock Expected to Rise?
Tesla stock has made a significant recovery so far this year. However, the pressure on margins due to continued price reductions has led to a pullback in its stock. Tesla CEO
Elon Musk is pushing for volumes and sacrificing margins in the short term amid growing competition. Further, the company has
rolled out cheaper versions of its Model S and Model X.
Analysts remain on the sidelines given the near-term concerns around margins and competition.
It has received 11 Buys, 13 Holds, and five Sell recommendations for a Hold consensus rating. Further, the
average TSLA stock price target of $254.21 implies a slight upside potential 6.55% from current levels.
The Bottom Line
Apple, Meta, and Tesla stocks are undoubtedly solid long-term picks. Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential.
Disclosure
In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of Aug. 21. Today's video will focus on Tesla's sales numbers in China, a clearer path for Tesla in India, more looks at the Model 3 refresh and Cybertruck, and a look at Tesla s
In today's video, I discuss Nvidia's (NASDAQ: NVDA) valuation and compare it with other tech giants like Tesla (NASDAQ: TSLA). Check out the short video to learn more, consider subscribing, and click the special offer link below.
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