Stock of the Week: Apple Inc.

This week’s stock of the week is Apple Inc. (AAPL). We are going to take a good look at Apple stock and the fundamentals and technicals. Note that we can only relay any data that we can publicly access. We are not professional or expert analysts, we encourage you to do further research if you want to invest in any stocks. If you have any more questions or suggestions about this article or if you have more information we could use, be sure to contact us through the contact page or mail us directly at info@aceofstock.com

What is Apple Stock?

Besides being a very healthy fruit, Apple also is a major electronics producer originating from the USA. Apple was already founded back in 1976, then by the name Apple Computer, Inc. Ronald Wayne (the forgotten founder), Steve Wozniak, and late Steve Jobs were the original founders of Apple, their mission was “to bringing the best user experience to its customers through its innovative hardware, software, and services.” Nowadays Apple is mostly know for their Iphones and MacBooks. But Makes alot more than just that, they also make products such as the Ipad, the Apple Watch and computers for the professional market. Next to that Apple also has it’s own OS, exclusive for their devices. Recently Apple also launched a Netflix like video streaming service called Apple TV+. Apple TV+ also futures some exclusive series such as Dickson, See and Ghostwriter. As you can see Apple has a plethora of devices and services and they market it to the man in a great way, but this comes at a price… a very hefty price.

Are Apple products too expensive?

This depends on the way you look at it. See, no matter how expensive Apple makes their products, people will keep buying them. Apple has done their marketing part so fantastically well that they’ve created a vast, almost cult-like, following that will buy almost any Apple product at almost any price. This is not even factoring in if the products really are too expensive or not. According to this info graphic, the markup on Iphones is insanely high. Granted that certain costs like R&D, logistics and marketing haven’t been factored in. The markups are still really high. However we can see that the markup has been slightly dropping throughout the years. Which means that Iphones have become more and more worth the actual money you spent, which is a good thing if you are looking for value. This is a discussion with no end though, Apple fans will always defend their prices and products and other people will say how ridiculous it might be. I’ll leave it up to you wether you think Apple’s products are too expensive or not. After all, you’re here to read about Apple stock, and you don’t need to actually own an Apple product to invest in the Apple stock. So moving on to more important matters.

Apple Stock’s Fundamentals

If we look at the fundamentals then we can see some interesting numbers. To name a few: The quick and current ratios are respectively 1.50 and 1.54, which are healthy numbers. However compared to the industry average Apple stock is on the low side for these ratios. Their current dividend yield is on the lower side as well with just 1,37%. On the bright side, Apple Stock is doing excellent with a lot of other fundamental metrics. Their margins are really high (possibly because of the high markups). Their gross and net profit margins are 37.58% and 21.25%. The float of Apple Stock is also really high with a whopping 98.79%, which keeps the stock from being too volatile. Their earnings per share (EPS) comes in at $11.85, which is really great as well. So overall their fundamentals look really good. The company is healthy and doing really well.

Apple Stock’s Technicals

The technical analysis for a stock is of course bound to certain times. You should also keep in mind that the technical analysis of a stock only keeps the chart and price-action in mind, the technical analysis does not look at the news or any sentiments. At the time of writing, all TA time frames for Apple Stock were at a healthy Buy rating. You can check this widget to see the current technical analysis rating for Apple:

Price targets and recommendations

Currently the analysts give Apple Stock a healthy Buy rating. With a few less Strong Buy ratings, but a bunch more Buy ratings and only a few hold ratings in December as opposed to previous months. The average price target for Apple Stock is 262.85. The high and low price targets are respectively 342.40 and 150. So all in all, Apple is floating around the average price target, but most analysts still seem to be positive and think Apple stock will rise further.

The verdict

Apple is a difficult stock to rate. Since apple has already gone through alot of rising throughout it’s stock market lifetime, it’s always difficult to predict when the top will be reached. Are we near the top, or will Apple just keep rising forever? So far the numbers look positive, Apple also has the fundamentals to back it up. I would recommend anyone that’s contemplating to invest in Apple stock to read up on the recommendations and price targets by the analysts. I would also recommend them to think about the future, the electronic device industry is already pretty crowded. Apple has survived so far, but will they succumb to other manufacturers in the future? food for thought. Personally i think Apple is still a long buy, i’m not too sure about the short to middle term. But if you don’t need the money for several years, I think Apple is a safe place to keep your money invested.

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