Apple Story

Apple -- USA Stock  

USD 165.72  0.48  0.29%

Macroaxis News
  
By David Taylor

I am typing on an Apple.  I have been doing so since 1986, although this computer is newer than my first Plus.  That is over thirty years.  They make great products, as the iPhone shows.  They have great integration with their products.  Everything works together and it works well.  But, is the stock priced about where it should be?

If I had to rate this stock I would say it is below average.  Case in point, looking at what you are investing in via earnings.  After all, that is what it is all about

Computers
Fama & French Classification
Apple is ripe for the picking as long as its stock gets just below these levels.

Apple has had strong earnings for some time.  Their stock is slightly above a level I would consider as a strong buy.  I am looking to add this stock in to my own portfolio to get a piece of the pie myself as long as the price dips to levels we saw just a few months ago.  Consider this company into your own portfolio.  




Is it safe to get into Apple?  

I am typing on an Apple.  I have been doing so since 1986, although this computer is newer than my first Plus.  That is over thirty years.  They make great products, as the iPhone shows.  They have great integration with their products.  Everything works together and it works well.  But, is the stock priced about where it should be?

If I had to rate this stock I would say it is below average.  Case in point, looking at what you are investing in via earnings.  After all, that is what it is all about:

2013:    $6.49 

2014:    $9.28  

2015:    $8.35

The stock is trading at $120 per share.  That is about 15-times earrings.  Interestingly, that is about average for the past 50 years.  But, and this is why I call the stock below average, the average today is roughly 26-times earnings.  Therefore, Apple is trading below that.  

To be fair, Apple was trading at about $90 per share just a few months ago.  Had you picked it up you would be sitting on a very nice, roughly 50% return in just a few months’ time.  Not bad.  But, you would have had a tough time predicting the Trump presidential victory, as nearly the entire world was caught off guard, and you would have had a tough time predicting the after-election rally.  So, it might have been a bit tough buying in to Apple at that point, and you are forgiven for missing the opportunity.  

I believe that the overall market is going to come down.  And, it might be that Apple falls down as well.  Given that I believe that there may be an opportunity to pick this stock up at a better entry-to-earnings ratio.  Investing in any stock is all about earnings.  Sure, there are other variables to factor in, but all those other variables amount to the end result of either better earnings or lower earnings.  When I look at these other variables, such as cashflow-to-earnings ratio or return on investment, I am looking at them with an eye towards whether or not earnings are going to outpace current levels.  

Apple is geared up to be earning more revenue over the next few years and their ability to outpace the past is there, albeit at a slightly elevated level.  Given that, I have always wanted to own Apple.  I am going to be looking to pick up this stock once the market corrects itself and Apple dips back down to about the $90 level again, should it fall that low.  

There is one catch, though.  Apple has a lot of competition in the mobile phone department.  Seems at one time they were the only game in town.  Now, every company out there is working to chip away at the mystique that Apple once had.  I still very much believe that Apple can hold on to its superiority in that department, this, despite the recent unimpressive sales of the iPhone 7.  Seems everyone is waiting for the 8, including me.  

Take a strong look at the numbers on Apple including the sales and revenue.  There are some impressive growth numbers there that should you be able to pick up this stock you will be glad you did.  Apple is a very long term holding for any portfolio.  They have proven themselves time and again.  The only question you should have is at what price to buy, and I would say that if you were given a $90 price again, you should take the offer. 

Story Momentum

This media report from Macroaxis distributed on January 12, 2017 was a factor to the next trading day price decrease.The overall trading delta against the next closing price was 0.18% . The overall trading delta when the story was published against the current closing price is 41.65% .

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Market Capitalization

Market Capitalization Comparative Analysis
  Market Capitalization 
      Apple Comparables 
Apple is rated below average in market capitalization category among related companies. Market Capitalization is total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Check also Apple Hype Analysis, Apple Correlation and Apple Performance. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.