Is Apple Stock a Good Investment?
Apple Investment Advice | AAPL |
- Examine Apple's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Apple's leadership team and their track record. Good management can help Apple navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Technology Hardware, Storage & Peripherals space and any emerging trends that could impact Apple's business and its evolving consumer preferences.
- Compare Apple's performance and market position to its competitors. Analyze how Apple is positioned in terms of product offerings, innovation, and market share.
- Check if Apple pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Apple's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Apple Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Apple Inc is a good investment.
Sell | Buy |
Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Apple Stock
Researching Apple's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 62.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.51. Apple Inc recorded earning per share (EPS) of 6.07. The entity last dividend was issued on the 8th of November 2024. The firm had 4:1 split on the 31st of August 2020.
To determine if Apple is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Apple's research are outlined below:
Apple Inc is unlikely to experience financial distress in the next 2 years | |
Apple Inc currently holds 106.63 B in liabilities with Debt to Equity (D/E) ratio of 2.61, implying the company greatly relies on financing operations through barrowing. Apple Inc has a current ratio of 0.86, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Apple's use of debt, we should always consider it together with its cash and equity. | |
Apple Inc has a strong financial position based on the latest SEC filings | |
About 62.0% of Apple shares are held by institutions such as insurance companies | |
On 14th of November 2024 Apple paid $ 0.25 per share dividend to its current shareholders | |
Latest headline from businesswire.com: Walmart, Amazon, Apple Dominate Black FridayCyber Monday Spending Among Paycheck to Paycheck Shoppers, New Data from Brigit Reveals |
Apple Quarterly Cash And Short Term Investments |
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Apple uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Apple Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Apple's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
2nd of May 2024 Upcoming Quarterly Report | View | |
1st of August 2024 Next Financial Report | View | |
31st of March 2024 Next Fiscal Quarter End | View | |
7th of November 2024 Next Fiscal Year End | View | |
31st of December 2023 Last Quarter Report | View | |
30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Apple's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Apple's investors have experienced.
Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2009-07-21 | 2009-06-30 | 0.0425 | 0.0475 | 0.005 | 11 | ||
2008-10-21 | 2008-09-30 | 0.04 | 0.045 | 0.005 | 12 | ||
2008-07-21 | 2008-06-30 | 0.0375 | 0.0425 | 0.005 | 13 | ||
2008-04-23 | 2008-03-31 | 0.0375 | 0.0425 | 0.005 | 13 | ||
2009-04-22 | 2009-03-31 | 0.04 | 0.0475 | 0.0075 | 18 | ||
2007-10-22 | 2007-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2007-04-25 | 2007-03-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2007-01-17 | 2006-12-31 | 0.03 | 0.04 | 0.01 | 33 |
Apple Target Price Consensus
Apple target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Apple's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
47 | Strong Buy |
Most Apple analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Apple stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Apple Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationApple Target Price Projection
Apple's current and average target prices are 246.75 and 234.79, respectively. The current price of Apple is the price at which Apple Inc is currently trading. On the other hand, Apple's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Apple Market Quote on 10th of December 2024
Target Price
Analyst Consensus On Apple Target Price
Apple Analyst Ratings
Apple's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Apple stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Apple's financials, market performance, and future outlook by experienced professionals. Apple's historical ratings below, therefore, can serve as a valuable tool for investors.Know Apple's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Apple is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Apple Inc backward and forwards among themselves. Apple's institutional investor refers to the entity that pools money to purchase Apple's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Northern Trust Corp | 2024-09-30 | 151.3 M | Bank Of New York Mellon Corp | 2024-09-30 | 109.7 M | Wellington Management Company Llp | 2024-09-30 | 96.4 M | Charles Schwab Investment Management Inc | 2024-09-30 | 94.9 M | International Assets Investment Management, Llc | 2024-09-30 | 94.3 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 91.6 M | Goldman Sachs Group Inc | 2024-09-30 | 86.5 M | Nuveen Asset Management, Llc | 2024-09-30 | 82.5 M | Bank Of America Corp | 2024-09-30 | 80.9 M | Vanguard Group Inc | 2024-09-30 | 1.3 B | Blackrock Inc | 2024-06-30 | 1.1 B |
Apple's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 3.73 T.Market Cap |
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Apple's profitablity analysis
Last Reported | Projected for Next Year | ||
Return On Tangible Assets | 0.26 | 0.28 | |
Return On Capital Employed | 0.65 | 0.55 | |
Return On Assets | 0.26 | 0.28 | |
Return On Equity | 1.65 | 1.56 |
Determining Apple's profitability involves analyzing its financial statements and using various financial metrics to determine if Apple is a good buy. For example, gross profit margin measures Apple's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Apple's profitability and make more informed investment decisions.
Apple's Earnings Breakdown by Geography
Evaluate Apple's management efficiency
Apple Inc has return on total asset (ROA) of 0.2146 % which means that it generated a profit of $0.2146 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 1.5741 %, meaning that it created $1.5741 on every $100 dollars invested by stockholders. Apple's management efficiency ratios could be used to measure how well Apple manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Apple's Return On Tangible Assets are quite stable compared to the past year. Return On Assets is expected to rise to 0.28 this year, although the value of Return On Capital Employed will most likely fall to 0.55. At this time, Apple's Other Assets are quite stable compared to the past year. Net Tangible Assets is expected to rise to about 95.6 B this year, although the value of Intangibles To Total Assets will most likely fall to 0.02.Last Reported | Projected for Next Year | ||
Book Value Per Share | 3.71 | 3.95 | |
Tangible Book Value Per Share | 3.71 | 3.95 | |
Enterprise Value Over EBITDA | 26.52 | 22.07 | |
Price Book Value Ratio | 61.37 | 43.37 | |
Enterprise Value Multiple | 26.52 | 22.07 | |
Price Fair Value | 61.37 | 43.37 | |
Enterprise Value | 6.7 B | 6.4 B |
Effective leadership at Apple drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Dividend Yield 0.0041 | Forward Dividend Yield 0.0041 | Forward Dividend Rate 1 | Beta 1.24 |
Basic technical analysis of Apple Stock
As of the 10th of December, Apple shows the Downside Deviation of 1.26, risk adjusted performance of 0.1122, and Mean Deviation of 0.8717. Apple Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Apple Inc jensen alpha, as well as the relationship between the potential upside and skewness to decide if Apple Inc is priced correctly, providing market reflects its regular price of 246.75 per share. Given that Apple has jensen alpha of 0.1263, we suggest you to validate Apple Inc's prevailing market performance to make sure the company can sustain itself at a future point.Apple's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Apple insiders, such as employees or executives, is commonly permitted as long as it does not rely on Apple's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Apple insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jeff Williams over a year ago Payment of 177870 shares by Jeff Williams of Apple subject to Rule 16b-3 | ||
Jeff Williams over a year ago Sale by Jeff Williams of 69785 shares of Apple | ||
Jeff Williams over a year ago Exercise or conversion by Jeff Williams of 136268 shares of Apple subject to Rule 16b-3 |
Apple's Outstanding Corporate Bonds
Apple issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Apple Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Apple bonds can be classified according to their maturity, which is the date when Apple Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
APPLE INC 445 Corp BondUS037833AT77 | View | |
APPLE INC 385 Corp BondUS037833AL42 | View | |
APPLE INC 45 Corp BondUS037833BW97 | View | |
APPLE INC 245 Corp BondUS037833BZ29 | View | |
APPLE INC 465 Corp BondUS037833BX70 | View | |
APPLE INC 325 Corp BondUS037833BY53 | View | |
APPLE INC 32 Corp BondUS037833BG48 | View | |
APPLE INC 4375 Corp BondUS037833BH21 | View |
Understand Apple's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Apple's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
Risk Adjusted Performance | 0.1122 | |||
Market Risk Adjusted Performance | 0.5757 | |||
Mean Deviation | 0.8717 | |||
Semi Deviation | 0.9771 | |||
Downside Deviation | 1.26 | |||
Coefficient Of Variation | 675.43 | |||
Standard Deviation | 1.2 | |||
Variance | 1.43 | |||
Information Ratio | 0.0244 | |||
Jensen Alpha | 0.1263 | |||
Total Risk Alpha | (0.06) | |||
Sortino Ratio | 0.0232 | |||
Treynor Ratio | 0.5657 | |||
Maximum Drawdown | 6.62 | |||
Value At Risk | (2.16) | |||
Potential Upside | 1.84 | |||
Downside Variance | 1.59 | |||
Semi Variance | 0.9547 | |||
Expected Short fall | (0.92) | |||
Skewness | (0.18) | |||
Kurtosis | 1.02 |
Risk Adjusted Performance | 0.1122 | |||
Market Risk Adjusted Performance | 0.5757 | |||
Mean Deviation | 0.8717 | |||
Semi Deviation | 0.9771 | |||
Downside Deviation | 1.26 | |||
Coefficient Of Variation | 675.43 | |||
Standard Deviation | 1.2 | |||
Variance | 1.43 | |||
Information Ratio | 0.0244 | |||
Jensen Alpha | 0.1263 | |||
Total Risk Alpha | (0.06) | |||
Sortino Ratio | 0.0232 | |||
Treynor Ratio | 0.5657 | |||
Maximum Drawdown | 6.62 | |||
Value At Risk | (2.16) | |||
Potential Upside | 1.84 | |||
Downside Variance | 1.59 | |||
Semi Variance | 0.9547 | |||
Expected Short fall | (0.92) | |||
Skewness | (0.18) | |||
Kurtosis | 1.02 |
Consider Apple's intraday indicators
Apple intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Apple stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Apple Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 1st of November 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 31st of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 2nd of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Apple Stock media impact
Far too much social signal, news, headlines, and media speculation about Apple that are available to investors today. That information is available publicly through Apple media outlets and privately through word of mouth or via Apple internal channels. However, regardless of the origin, that massive amount of Apple data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Apple news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Apple relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Apple's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Apple alpha.
Apple Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Apple can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Apple Inc Historical Investor Sentiment
Investor biases related to Apple's public news can be used to forecast risks associated with an investment in Apple. The trend in average sentiment can be used to explain how an investor holding Apple can time the market purely based on public headlines and social activities around Apple Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Apple's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Apple and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Apple news discussions. The higher the estimate score, the more favorable the investor's outlook on Apple.
Apple Corporate Management
Michael Fenger | VP Sales | Profile | |
Ron Okamoto | Head Relations | Profile | |
Nancy Paxton | IR Contact Officer | Profile | |
Jeffrey Williams | Chief Officer | Profile | |
Chris Kondo | Senior Accounting | Profile |
Already Invested in Apple Inc?
The danger of trading Apple Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Apple is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Apple. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Apple Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Apple Inc is a strong investment it is important to analyze Apple's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Apple's future performance. For an informed investment choice regarding Apple Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Apple Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Apple. If investors know Apple will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Apple listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.34) | Dividend Share 0.98 | Earnings Share 6.07 | Revenue Per Share 25.485 | Quarterly Revenue Growth 0.061 |
The market value of Apple Inc is measured differently than its book value, which is the value of Apple that is recorded on the company's balance sheet. Investors also form their own opinion of Apple's value that differs from its market value or its book value, called intrinsic value, which is Apple's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Apple's market value can be influenced by many factors that don't directly affect Apple's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Apple's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Apple is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Apple's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.