Apple Story

AAPL -- USA Stock  

USD 156.96  1.10  0.01%

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

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. 

Apple Debt to Cash Allocation

The company currently holds 114.48B in liabilities with Debt to Equity (D/E) ratio of 106.8 indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Apple has Current Ratio of 1.1 suggesting that it is in a questionable position to pay out its financial obligations when they are due.

Sale by Kondo Chris of 3408 shares of Apple

Apple insider trading alert for sale of common stock by Kondo Chris, Principal Accounting Officer, on November 21, 2018. This event was filed by Apple Inc with SEC on 2018-11-21. Statement of changes in beneficial ownership - SEC Form 4 [view details]   

About Contributor

David Taylor
   David Taylor is a Senior Member of Macroaxs Editorial Board - Sector Analysis. David is a professional writer who writes for multiple investment news outlets. His primary focus is dynamic movements in financial markets and effects of economic volatility on North American industries and sectors. David has many years of experience in financial service industry including working with major banks as a FX trader. In his free time, he does a lot of outdoors type activities including rock climbing, mountain biking, hiking, mountaineering and kayaking in the summer, and snowboarding in the winter. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and David Taylor do not own shares of Apple. Please refer to our Terms of Use for any information regarding our disclosure principles.

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 30.93% .

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Operating Margin

Operating Margin Comparative Analysis

  Operating Margin 
      Apple Comparables 
Apple is currently under evaluation in operating margin category among related companies. Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Check also Apple Hype Analysis, Apple Correlation and Apple Performance. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.
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