Apple stock (NASDAQ: AAPL) has once again reclaimed it’s position as the number 1 company by market cap on US markets, leapfrogging both Nvidia and Microsoft in recent weeks.
Apple is a technology powerhouse founded in 1976 by Steve Jobs and Steve Wozniak. Today, Apple is world-renowned for its innovative consumer electronics, including smartphones, computers, tablets, and wearables.
Apple’s mission is to “bringing the best user experience to its customers through its innovative hardware, software, and services.” They achieve this by designing, developing, and marketing a range of interconnected products like the iPhone, iPad, Mac computer, Apple Watch, and AirPods.
Apple is known for its sleek product design, user-friendly operating systems (iOS, macOS, iPadOS), and strong brand loyalty. Its headquarters are in Cupertino, California, and its stock trades on the Nasdaq under the ticker symbol AAPL.
YOUR CAPITAL IS AT RISK
Apple EPS and Revenue Breakdown 2020-2023
| Apple | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $3.28 | $274.52 billion |
| 2021 | $5.61 | $365.82 billion |
| 2022 | $6.11 | $394.33 billion |
| 2023 | $6.13 | $383.29 billion |
After a pullback between January and late April, Apple shares began to climb once again, although investors are still concerned about the company’s current headwinds. AAPL stock pushed through new all time highs this year, taking out $200 per share which had been a resistance point for some time, before sailing on to $237.23.
The recent pullback has the stock closer to $220, but remaining a firm gainer on the YTD.
P/E Ratio Average Over the Last Ten Years: 20.46 (Source: FullRatio)
Computer and Consumer Electronics Industry Comparison
YOUR CAPITAL IS AT RISK
Apple Share Price Forecast
According to data compiled by TradingView, out of 45 analysts covering Apple and issuing a rating over the last three months, 30 have a Buy rating, 13 have a Hold rating, and 2 have a Sell rating on the technology giant’s shares.
In a client research note, analysts at Itau BBA upgraded Apple shares to Market Perform from Underperform with a new price target of $188, up from $162 per share. The firm raised its rating for the stock following Apple’s fiscal second-quarter report. They cited a potential turn in the negative smartphone cycle for the first time since 2022 and a turn toward less unfavorable sales momentum for the upgrade.
Phillip Securities raised the Apple rating to Accumulate from Neutral, maintaining a price target of $194 per share on the stock in a research note. The firm highlighted Apple’s valuation as its reason for upgrading the stock, with Apple shares having pulled back at the time. The firm said the iPhone maker’s artificial intelligence trajectory remains uncertain as the company refrained from disclosing additional details.
Our View: Apple has faced some issues over the last few months, which have pressured its share price. However, with the company’s products still some of the best around and the potential for AI-related updates and innovations, we still view Apple as a company investors should definitely consider assessing further.
Apple Stock Suitability
Apple stock can be a strong addition to some portfolios, but it’s not a one-size-fits-all investment. Here’s a breakdown of who might benefit from buying Apple shares:
Apple has a history of consistent growth and innovation. Investors with a long-term outlook can potentially benefit from Apple’s established track record and future product development.
Apple, while a mature company, still has room for growth in new markets and product categories. Investors looking for companies with the potential for steady, consistent growth may find Apple appealing. Also those looking for a firm with strong CSR policies may find AAPL attractive.
The consumer technology leader and its products are known for their design and user experience. Investors who are excited about the future of technology and its impact on daily life may find Apple a good fit.
While Apple’s dividend yield is relatively low, it does offer some level of income for investors. However, there are better options for investors seeking high or regular dividend income.
The technology sector is constantly evolving, and Apple faces competition from other major players. So investors with an understanding of the market and new technologies (artificial intelligence, for example) would be suited to buying Apple shares.
Whilst many people day trade Apple stocks, this is a completely different strategy that will require some intense learning.
