FAANG Pullback Inevitable in 2018?

7:09 am ET, 02 Jan 2018

FAANG

As you're entering 2018, you may be wondering which stocks that you own in your portfolio are bound for a 'correction' in 2018.  

The scale of the FAANG rally in 2017  has led some investors to believe that this group has been overdone as an investing theme, especially given signs of overvaluation. 

Facebook, Amazon, and Netflix were up more than 50% over the last 12 months; Apple's gain was over 50%, and Google 'trailed behind' with 30%+ annual stock price growth.

And the FAANG stocks weren’t just market leaders this year; they accounted for a sizable portion of Wall Street’s overall move higher. 

How do the analysts feel about these stocks?  Morgan Stanley said it is still positive on the group, but macro factors could be concerning.  History indicates that returns may moderate their pace and Morgan Stanley analysts question whether growth can be sustained in the upcoming period.  

Apple investors should be especially worried about the $1,000 price tag on the iPhone X that may cut into first-quarter demand.

The group may be less well-insulated from cyclical pressures that many investors anticipate will increase over the next couple of years.  These stocks are tied to the cycle via advertising and consumer spending.

Here is a look-back on Facebook and Amazon stock performance.  Over the last year, FB returned +52.54%. This return is higher than Internet Information Providers sector (42.56%), Technology industry (26.77%), S&P 500 (18.87%) returns.

Over the last year, AMZN returned +52.98%. This return is higher than Catalog & Mail Order Houses sector (20.39%), Services industry (4.74%), S&P 500 (18.87%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Apple Inc. (AAPL) Stock Guide

Updated at: 12:32 am ET, 12 Jul 2020

Before we start: if you're looking for AAPL stock price, you can quickly find it out by visiting Finny and typing "AAPL quote". If you're looking for a quick scoop on AAPL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AAPL". You'll get all this info in one place. Or you can just type "AAPL news" to get the latest stock news.

Looking to buy or sell Apple Inc. (AAPL)? Interested in getting the full scoop on AAPL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AAPL stock guide, we'll address key questions about AAPL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AAPL earnings?
2. When is AAPL earnings date?
3. What is AAPL dividend?
4. What is AAPL dividend yield?
5. What is AAPL stock forecast (i.e., prediction)?
6. AAPL buy or sell? What is AAPL Finny Score?
7. What are the reasons to buy AAPL? Why should I buy AAPL stock?
8. What are the reasons to sell AAPL? Why should I sell AAPL stock?
9. What are AAPL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AAPL earnings?

AAPL trailing 12-month earnings per share (EPS) is $12.73.

2. When is AAPL earnings date?

AAPL earnings date is July 30, 2020.

3. What is AAPL dividend?

AAPL forward dividend is $3.28.

4. What is AAPL dividend yield?

AAPL forward dividend yield is 1.07%.

Analyst Predictions

5. What is AAPL stock forecast (i.e., prediction)?

Based on AAPL analyst price targets, AAPL stock forecast is $308.91 (for a year from now). That means the average analyst price target for AAPL stock is $308.91. The prediction is based on 38 analyst estimates.

The low price target for AAPL is $207.77, while the high price target is $370.80.

AAPL analyst rating is Buy.

Analysis

6. AAPL buy or sell? What is AAPL Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell AAPL, resulting in Finny Score of 50.

7. What are the reasons to buy AAPL? Why should I buy AAPL stock?

Here are the reasons to buy AAPL stock:

  • Apple's iPhone and iOS operating system have consistently been rated at the head of the pack in terms of customer loyalty, engagement and security, which bodes well for long-term customer retention.
  • Apple is one of the leading players in the wearables market. Apple’s WatchOS features the ability to integrate with Apple Music and has a Siri-integrated interface, along with fitness oriented tech program, GymKit. Furthermore, Apple has also been making some important developments for its voice assistant, Siri, which will now be integrated with iOS 11 with a more natural sounding voice and translation capabilities.
  • Apple’s non-iPhone businesses such as services and wearables, are expected to be growth drivers in the upcoming years. The services portfolio has emerged as the company’s new cash generator. There are more than 420 million paid subscribers across Apple's services portfolio.
  • Apple Pay, designed on the basis of a contactless payment NFC technology, has expanded to more than 50 markets. Apple Pay is adding more users than PayPal, and the number of transactions is skyrocketing (triple-digit growth year-on-year).
  • Apple Music currently has more than 60 million paid subscribers. Apple Music’s availability on Amazon Echo devices, along with its partnership with Verizon is helping the company spread against Spotify in the music business.
  • AAPL profitability is improving. The YoY profit margin change was 1.32 percentage points. See AAPL profitability chart.
  • AAPL forward dividend yield is 1.07%, higher than the industry (0.45%) and sector (0.26%) forward dividend yields. See AAPL forward dividend chart.
  • AAPL average analyst rating is Buy. See AAPL analyst rating chart.
  • AAPL cash to debt ratio is 0.79, higher than the average industry (0.15) and sector (0.17) cash to debt ratio. See AAPL cash to debt chart.

8. What are the reasons to sell AAPL? Why should I sell AAPL stock?

Let's look at the reasons to sell AAPL stock (i.e., the bear case):

  • Apple is facing increasing regulatory hassles in Europe and the US. Also, future US immigration and trade policy could have negative ramifications for Apple, which has significant overseas operations and manufacturing partnerships.
  • Apple faces significant competition in most of its operating markets. In the desktop segment, Apple faces intense competition from Hewlett-Packard, Lenovo, Dell, Acer and Asus. In the smartphone segment it competes with Samsung, Xiaomi, Google and many other players.
  • Apple’s excessive dependence on iPhone is a risk to overall growth. Although iPhone revenue has benefited from its higher average selling price (ASP), Apple is declining its market share in China and India because of premium pricing.
  • AAPL stock price ($383.68) is close to the 52-week high ($384.24). Perhaps now is a good time to sell? See AAPL price chart.
  • AAPL quarterly revenue growth was 0.50%, lower than the industry and sector average revenue growth (0.85% and 1.51%, respectively). See AAPL revenue growth chart.
  • AAPL Price/Book ratio is 17.07, which is high compared to its industry peers’ P/B ratios. See AAPL forward Price/Book ratio chart.
  • AAPL average analyst price target ($308.91) is below its current price ($383.68). See AAPL price target chart.

Key Stats

9. What are AAPL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AAPL:

Metrics AAPL
Price $438.67
Average Price Target / Upside $308.91 / -29.58%
Average Analyst Rating Buy
Forward Dividend Yield 1.07%
Industry Consumer Electronics
Sector Technology
Number of Employees 132,000
Market Cap $1,341.65B
Forward P/E Ratio 21.01
Price/Book Ratio 5.01
Revenue (TTM) $267.98B
YoY Quarterly Revenue Growth 0.50%
Profit Margin 21.35%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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