Company Summary
Apple is undoubtedly one of the most iconic brands on the planet, with products such as the iPhone smartphone being one of the highest selling technology products of all time, breaking records in sales with each iteration. Apple has been a publicly traded company nearly since its inception, and has demonstrated tremendous growth in the last 20 years, commonly being recommended as one of the best and most consistent technology stocks.
Cash Flow and Financials
- Operating cash flow: $116.426B
- Low revenue estimate: $386.48B
- Avg. revenue estimate: $415.04B
- High revenue estimate: $440.65B
Stock Information
- Price-to-earnings ratio: 23.68 (July 12, 2022)
- Current stock price: $145.49 (July 13, 2022)
- Forward Dividend & Yield: 0.92 (0.60%)
- Average trade volume: 93,826,748
- 52-week high: $182.94
- 1y target estimate: $184.89
- Market cap: 2.355T
- Earnings per share: 6.15
Analyst Predictions
Analyst recommendations for APPL are bullish, indicating that the stock is likely to grow, especially in the short-to-medium term. The price is relatively low for the stock currently due to a general drop in the stock market and technology stocks, but it is expected that AAPL will return to its average of approximately of $184. In fact, the IMF believes Apple stock will grow faster than the US economy. With an annual 10% annual earnings per share, APPL is most often a recommended buy for investors. Despite some supply chain difficulties, Apple’s healthy state projects growth making the current price point an attractive entry.
Stock vs. P/E Ratio
Apple is undoubtedly one of the most iconic brands on the planet, with products such as the iPhone smartphone being one of the highest selling technology products of all time, breaking records in sales with each iteration. Apple has been a publicly traded company nearly since its inception, and has demonstrated tremendous growth in the last 20 years, commonly being recommended as one of the best and most consistent technology stocks.
Market Cap
Market Cap data present valuable information for investors about the company’s value and size in comparison to other companies. Furthermore, the indicator can identify the potential level of risks that investors might face with the stock. The indicator reflects the number of stocks multiplied by the price per share. Thus, stocks with larger cap are more reliable, even though they cannot offer higher growth potential than companies with mid or small-cap stocks.
Some experts consider the market cap indicator a more accurate representation of a company’s value than the stock price. In general, there are three categories of companies depending on the size of the market cap: large-cap, mid-cap, and small-cap, with small-cap companies having capitalization from three hundred million to 2 billion. Large-cap companies have more than ten billion in capitalization, and mid-cap companies occupy the space between small and large-cap companies. However, depending on the depth of analysis, one can also define the mega and micro-cap companies.
Trends
Apple strongly relies on its stock and investors to drive its cash flow. AAPL has established a reputation for being a safe stock technology stock option, and despite some decreases, the trajectory for AAPL is almost always positive. While the dividend payout yield is low, at 16% compared to the market’s 30% average, it is commonly so for technology firms that are cash intensive (Leswing, 2022). The company’s cash flow both from profits and stock equity allows it to endure even the most challenging economic times and return profit to stakeholders, while also generating fiscal resources that it has available.
Recommendations
Overall, evidence and numerical indicators examined in this report suggest that AAPL is a strong and promising stock in the current market. It is well-known that AAPL continues to increase growth and sales year over year, as reflected in its revenue. There are several factors that favor the decision to invest in AAPL stock. Firstly, the company’s financial data on cash flow identified an increase through 2020 and 2021 (from 69.391B in 2019 to 104.038B in 2021). The data means that the company has a significant number of loyal customers, ensuring increased cash flow growth even under challenging conditions of the pandemic. Furthermore, the company’s current earnings per share ratio (6.15) can signal growth potential for investors. Lastly, both the company and its stock have climbed gradually over the last years, and despite a minor decline currently in light of the general market economy, it is likely to increase in value and potentially reach the target estimate of $184.89 per share, up from the current $145.49. The company Apple seeks to please its investors and regularly pays dividends from successful quarter earnings.
References
Leswing, K. (2022). Why it’s bad news for the entire market when Apple has a big drop. CNBC. Web.
NASDAQ. (2017). Remembering Steve Jobs: 3 quotes for investors. Web.
Macrotrends. (2022). Apple Market Cap 2010-2022. Web.
Stock Analysis on Net. (2021). Apple Inc. Web.
Strauss, L. C. (2022). Why Apple should put more of its cash toward its dividend. Barron’s. Web.
The Economic Times. (2022). Apple’s m-cap at $3 trillion less than just 4 nations’ GDP. Web.
Yahoo Finance. (2022). Apple Inc. (AAPL). Web.