Ahead of Earnings, Is Apple Stock a Buy, a Sell, or Fairly Valued?

By: Flaka Ismaili    December 9, 2022

should i buy apple stock

In the March quarter, Apple’s iPhone revenue increased 2% to $51.3 billion, topping analyst estimates. Smartphones accounted for 54% of the company’s total sales in the period. Earnings estimate revisions are the most important factor influencing stocks prices. It’s an integral part of the Zacks Rank and a critical part in effective stock evaluation. If a stock’s EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision.

With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (AAPL 2.31%) is Berkshire Hathaway’s largest equity holding by far. If you’d like to buy Apple stock directly, sadly, you’re out of luck. You cannot purchase Apple stock directly through the company. Commissions, for reference, are fees based on trades you make.

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Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

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The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. Once again, cash flow is net income plus depreciation and other non-cash charges. It’s https://investmentsanalysis.info/ typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio. In this case, it’s the cash flow growth that’s being looked at.

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It’s incredible that the largest companies–megatech–keep going straight up. But it’s inevitable to take profits, like she recently did with Apple. She added to Microsoft because she sees a little more runway ahead.

The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Due to inactivity, you will besigned out in approximately:

Apple stock is traded on the tech-heavy NASDAQ stock exchange under the ticker AAPL. Our partners cannot pay us to guarantee favorable reviews of their products or services. Shares of the technology giant now sit at 52-week highs following their impressive rally. The Apple share price may have fallen last year, along with other technology stocks, but there are reasons for longer-term optimism, according to Danni Hewson, a financial analyst at AJ Bell. Another factor driving Apple’s stock is Tablet, laptop and computer sales for both corporate and consumer users.

  • Accurately predicting what will happen to a company and its share price over the coming decade is practically impossible.
  • Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts.
  • Since there is a fair amount of discretion in what’s included and not included in the ‘ITDA’ portion of this calculation, it is considered a non-GAAP metric.
  • So, despite its position as the world’s most valuable company, it still has plenty of room for growth.

These returns cover a period from January 1, 1988 through May 15, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.

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However, the price tag of nearly $3,500 could greatly limit its commercial success. Although Apple has previously performed well, its past results do not mean it will deliver similar results in the future. And while Apple managed to outperform the S&P 500 over the past five years, that doesn’t mean you should https://forexbox.info/ invest all of your money in Apple—or any single stock. As customers adjust their budgets, they may be less willing to pay the premium for Apple products and may switch to lower-cost alternatives. Product Diversity

Apple has a broad range of products, including everything from earbuds to advanced laptops.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Here is a list of our partners and here’s how we make money. Throw in the fact that Apple is expected to raise prices when it releases its next-generation smartphones, the company is likely to benefit from a combination of strong volumes and higher ASPs. The company started ramping up the production of its next-generation iPhones, which are expected to hit the market in September this year. Supply-chain rumors suggest that Apple is going all out to ensure that there is no shortage of supply when its new iPhones come out.

  • When you open a new, eligible Fidelity account with $50 or more.
  • That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B.
  • They should be very minor and not dramatically impact your inclination to invest in a stock or not.
  • The company has led the way for the consumer tech industry for decades and has a cult-like following of loyal customers, making it an appealing long-term investment.
  • Tim Cook took over the role of CEO in 2011 shortly before the death of Steve Jobs.

This shows the percentage of profit a company earns on its sales. Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. The Price to Sales ratio or P/S is calculated as price divided by sales. After the P/E ratio, it’s one of the most common valuation metrics. The PEG ratio is the P/E ratio divided by its growth rate.

While Apple’s payout ratio might seem low, this can signify that Apple is investing more in its future growth. This means that it’s generally a good idea to invest in exchange-traded funds (ETFs) or index funds like the S&P 500 to gain quick exposure to a variety of companies and industries. Apple is a major part of the NASDAQ index, so it’s included in many global funds and investment trusts like the S&P 500, as well as ETFs. This repurchase authorization permits the company to purchase up to 3.4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

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You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade https://forex-world.net/ does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Moreover, Apple is gradually growing its position in the fintech industry.

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The short-term cash position, however, is not brilliant, indeed. The cash ratio, the quick ratio, and even the current ratio is all less than 1, which is not very healthy. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

should i buy apple stock

While your transfer clears, some allow you the ability to trade on credit until the funds officially settle in your account. Today, you can buy shares in companies like Apple (AAPL) fully online through low-cost (or free) brokers. Apple’s price-to-free cash flow ratio is also somewhat elevated right now. The corporation’s stock is not particularly volatile though. Its beta is about 1, which is quite good for a high-tech company.