We found a bullish thesis on Apple Inc. (AAPL) on Substack by Kontra on Kontra Investment Xchange. This article summarizes the bulls’ arguments regarding AAPL. Apple stock was trading at $235 on October 18th.th. According to Yahoo Finance, AAPL’s trailing P/E and forward P/E were 35.77 and 30.96, respectively.
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Apple, a major technology company known for its iPhones, iPads, Mac PCs, and wearable products, accounts for about 80% of the smartphone industry’s profits, even though it only accounts for about 20% of units sold. The iconic iPhone alone accounts for about 50% of Apple’s revenue, services about 20% and other hardware the remaining 30%. Founded in 1977, Apple is headquartered in Cupertino, California, and has approximately 161,000 employees worldwide. For the company, driven by a very sticky product ecosystem, steady growth in iPhone units with stable replacement cycles, and solid service expansion supported by increased user spending and global demand for wearable products such as AirPods. , a favorable risk-reward scenario exists. These factors are expected to improve margins, reflecting Apple’s pricing power and favorable service mix. Additionally, Apple’s strong cash distribution strategy includes a strong expectation to return most of its net cash to shareholders over the long term through dividends and share repurchases. Although potential risks exist, such as supply chain disruptions and exposure to China, Apple remains a reliable formular, with returns on invested capital (ROIC) ranging from the low-to-mid 20% range to the high 40%. range and gross profit margins have consistently exceeded it. It’s up 38% over the past five years, confirming its attractive growth prospects.
Apple Inc. is included in our list. 31 most popular stocks among hedge funds. According to our database, 184 hedge fund portfolios held AAPL at the end of the second quarter, compared to 150 in the previous quarter. While we recognize the risks and potential of AAPL as an investment, we believe that some AI stocks are more likely to deliver higher returns and do so in a shorter time frame. Masu. If you’re looking for AI stocks with more promise than CL, but trading at less than 5x P/E, check out our report. cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
