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Commentary

Apple Not Only Large-Cap Bargain

Recent weakness has left these large-cap stocks looking attractive.

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Even if it is the largest company by market cap in the world, there was an unusually large amount of focus on  Apple (AAPL) this past week. The stock had its biggest one-day decline in four-years on Wednesday as investors fretted about growth. Then a series of interviews with reserved CEO Tim Cook hinted at the possibility of a renewed focus on TV and revealed that Apple is moving some iMac production back to the United States. And just to pile on, T-Mobile (a unit of  Deutsche Telekom (DTEGY)) announced that it would be the final major U.S. carrier to offer the iPhone. 

The focus of the recent days comes on top of a period of weak performance for the stock. Apple shares have slid 20% during the last three months. But year-to-date performance of a 35% gain still looks pretty good compared with the S&P 500's increase of just less than 15%. In fact, Apple is the biggest single contributor to the positive performance of the S&P 500 this year. Apple (which makes up more than 4% of the index by market cap) represents 1.18 percentage points of the 14.73% positive performance of the index. The next biggest contributor is  Bank of America (BAC) which represents 0.45 percentage points of the performance.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.