Are the Apple Bulls Back?

After days of dismay, Apple (NASDAQ:AAPL) is heading into the New Year on a high after a Barron’s column made a bull case for the stock. Apple closed 4.43 percent up at $532.17.

What’s Going on for Apple?

“The company’s shares will eventually rebound as it refocuses on what it does best, making great products that generate huge amounts of money,” Tiernan Ray wrote. In addition, a lot of the fast money in the stock has been chased away amid the recent decline, with shares dropping more than 27 percent in value since reaching a record high in September.

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While funds were fattening their portfolios with Apple earlier in the year, David Rolfe of Wedgewood Partners told Barron’s that he expected to see a “very different picture” of holdings when funds report their December-quarter changes. According to Rolfe, funds overweight Apple were the first to head toward the exit when the stock started falling. But with the company’s shares now trading at just seven and a half times projected earnings of $49 a share in the fiscal year ending in September, the stock valuation, as well as earnings estimates, have become undemanding.