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Apple Inc. (AAPL) Buy or Sell Stock Guide
Are you looking for the analysis of Apple Inc. (AAPL) stock? Are you wondering what the bulls and the bears say about it?
If so, you came to the right place. In this stock guide, we will share with you 10 reasons to buy and 4 reasons to sell AAPL stock. You’ll get a perspective on what the bulls and the bears say about it.
The analysis below may be also helpful to you if you have any of the following questions about AAPL stock:
- Is AAPL a buy or a sell?
- Should I sell or hold AAPL stock today?
- Is AAPL a good buy / investment?
- What are AAPL analyst opinions, recommendations and ratings?
Let’s start with the bull case. Here are the reasons to buy AAPL stock:
1. 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.
2. 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.
3. 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.
4. 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).
5. 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.
6. AAPL quarterly revenue growth was 8.90%, higher than the industry and sector average revenue growth (2.30% and 3.66%, respectively). See AAPL revenue growth chart.
7. AAPL profitability is improving. The YoY profit margin change was 1.32 percentage points. See AAPL profitability chart.
8. AAPL forward dividend yield is 1.24%, higher than the industry (0.32%) and sector (0.20%) forward dividend yields. See AAPL forward dividend chart.
9. AAPL average analyst rating is Buy. See AAPL analyst rating chart.
10. AAPL average analyst price target ($333.57) is above its current price ($250.81). See AAPL price target chart.
Now that you understand the bull case, let’s look at the reasons to sell AAPL stock (i.e., the bear case):
1. 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.
2. 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.
3. 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.
4. AAPL Price/Book ratio is 13.61, and it’s high compared to its industry peers’ P/B ratios. See AAPL forward Price/Book ratio chart.
Now let's look at the key statistics for AAPL:
|Average Price Target / Upside||$333.57 / 31.99%|
|Average Analyst Rating||Buy|
|Forward Dividend Yield||1.24%|
|Number of Employees||132,000|
|Forward P/E Ratio||17.81|
|YoY Quarterly Revenue Growth||8.90%|
What are your thoughts on AAPL?
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