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The game-changing smartphone, which debuted in 2007, sparked years of massive growth and created a loyal base of customers willing to buy Apple products and services. Apple’s price-to-free cash flow ratio is also somewhat elevated right now. Right now, it’s 30.9, extremely high compared to the long-term averages. In FY 2013 (ended September 30), the iPhone maker notched $1.82 in inflation-adjusted EPS, doubling the figure to $3.75 in 2020. Over the next 12 months, profits exploded, jumping 62% to $6.08 in FY 2021, and surmounting 8% inflation to beat that level in 2022 at $6.11. It deploys not current results, but a 10-year average of EPS, marking up past years for inflation.
And like the P/E ratio, a lower number is typically considered ‘better’ than a higher number. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Apple has had immense success with its products over the years.
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However, like many technology companies, Apple had supply chain issues and labor disruptions throughout the pandemic. It’s no surprise that the company’s stock price hasn’t performed as well over the past year as many investors hoped. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. In general, a lower number or multiple is usually considered better that a higher one. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers.
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- Opting to invest in Apple would allow your money to grow more than twice as much than if you had invested in the S&P 500.
- It could be argued that AAPL has a limited upside due to its high price and market capitalization.
- In doing so, you can buy Apple stock now and wait for it to rise to new heights.
This is a boost from the stock’s previous quarterly dividend of $0.23. We think consensus estimates remain too high for this year, especially for the hardware businesses (such as iPhone, iPad, and Mac). Considerable declines are likely for revenue in those segments.
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So now let’s move to some technical analysis of the two stocks. Added Suva, “Apple’s current market value does not reflect new product category launches. This will change with the launch of the new AR/VR headset in 2023 and foldables in 2024.” The more compelling valuation on mighty Apple has caught the attention of long-time tech analyst Jim Suva at Citi. The $182 level is the most critical level on the following chart. Apple stock price prediction will remain bullish as long as the stock remains above this level.
61 million iPads and 26 million Mac and MacBook units were sold in 2022. Apple services, which inculdes music, movies, TV shows, stickers, books, and app purchases has https://g-markets.net/helpful-articles/candlestick-chart-in-excel/ also contributed to Apple’s success. The 52 Week Price Change displays the percentage price change over the most recently completed 52 weeks (260 trading days).
Apple Stock Forecast
When you know how many shares of Apple stock you want to purchase, the next choice you’ll need to make is which kind of buy order you want to use to invest. The type of buy order you choose will confirm the details of your order, how much you’ll pay per share, when your order will be executed and more. Invest in Apple stock today with Interactive Brokers or Robinhood as your trusted online brokerage. The market has been high on Apple Inc (AAPL) stock recently.
Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of AAPL, demonstrate its potential to underperform the market. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. A D/E ratio of 1 means its debt is equivalent to its common equity. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another. So it’s a good idea to compare a stock’s debt to equity ratio to its industry to see how it stacks up to its peers first.
© 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. One share of AAPL stock can currently be purchased for approximately $190.47. Apple is headquartered in Apple Park, an ultra-modern campus built in Cupertino, California.
Pros of Buying AAPL Stock
As per the most recent Apple news, the company unveiled its Vision Pro AR headset in June 2023. This makes the first major hardware release by the company in almost a decade. Apple stock price kept surging before the launch event and hit a new all-time high.
Back in January 2013, shares stood at a modest $19.60, but hit their all-time high of $180.73 on 3 January 2022. However, a difficult 2022 saw the multinational technology company lose 30% of its stock value. If a stock’s Q1 estimate revision decreases leading up to its earnings release, that’s usually a negative sign, whereas an increase is typically a positive sign. Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. It’s then divided by the number of shares outstanding to determine how much cash is generated per share. The Price to Book ratio or P/B is calculated as market capitalization divided by its book value.
Because of broader macro weakness, we also expect declines in Apple’s services segment, particularly for app store ad sales and in-app purchases. In this article, we are going to examine Apple’s latest financials, explore what the analysts are saying about AAPL’s future growth prospects, and consult the algorithmic Apple stock forecast. The outlook for Apple stock is positive, with analysts projecting revenue growth and a potential upside in the stock price, making Apple stock a potentially good buy right now.
It’s possible that as the company adapts, supply chains will strengthen and lockdowns will have less of an impact in 2023. In the early days of the pandemic back in 2020 and ‘21, Apple continued to thrive. It was, in a way, a perfect storm for people to buy Apple products. The work-from-home movement was in full swing, people had extra cash in their pockets from stimulus checks and the dreaded supply chain issues hadn’t wrecked inventories.
One of the most lucrative investments of the past decade has been Apple stock. The company’s portfolio includes some of the most innovative tech products that, include the iPhone, iPad, Mac Book, and Apple Watch. The company has sold its products to hundreds of millions of users and has become the most valuable company in the world. What’s perhaps more exciting than the past results is the fact that Apple surprised experts with a strong showing in the first quarter of 2023.
Apple stock forecast 2040
Despite the challenges Apple faces, its stock forecast is still strong. The consensus among analysts is that the company will perform well over the next few years, and it’s considered a “strong buy” based on a Nasdaq analysis of recommendations by 26 analysts. The 1 week price change reflects the collective buying and selling sentiment over the short-term.
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. Although it might seem that Apple is quite a saturated company thanks to its long operational history, the Cupertino-based business is still expanding by opening new stores. For example, it was recently announced Apple would open its first official store in Mumbai, India. Suva reiterated a buy rating on Apple with $175 price target, which assumes about 30% upside from current levels.
