Stock (Symbol) |
Apple (AAPL) |
Stock Price |
$117 |
Sector |
Technology |
Data is as of |
November 29, 2020 |
Expected to Report |
January 26 |
Company Description |
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Sharek’s Take |
![]() Overall, AAPL delivered -4% profit growth last qtr as sales rose 1%. Customers held off on upgrading their iPhones last qtr. iPhone revenue declined 21% last qtr. But the pandemic helped boost mac and iPad revenue, which increased 29% and 46% respectively. Service revenue grew a respectable 16%. Paid subscriptions have provided a boost to Services. Apple now has 585 million paid subscribers, up 135 million from last year. Here’s some AAPL stats from last qtr:
Apple stock has an Estimated Long-Term Growth Rate of 13% a year, in addition to a yield of 1%. Management also buys back billions in stock. AAPL is part of the Conservative Growth Portfolio. Right now I see just a little upside in the shares, but if the 5G iPhone becomes a catalyst and boosts profit estimates I will likely become more bullish. |
One Year Chart |
![]() The Est. LTG of 13% is same as last qtr. Note, analysts don’t expect this to be a fast growing company in the future. Thirteen percent isn’t much. The P/E of 30 is reasonable for this stock. The P/E was just 15 5QtrsAgo. In retrospect, the stock was a steal back then. |
Earnings Table |
![]() Annual Profit Estimates had slight increases this qtr. Qtrly profit Estimates are for 11%, 34%, 17% and 26% growth the next 4 qtrs. Note the “good” qtrs have easy comparisons to the year-ago periods. |
Fair Value |
![]() Now the question is: will the P/E continue to climb? I think the stock is worthy of a 32 P/E, which equates to $126 a share this year and $138 next year. If the 5G iPhone pushes profit estimates up, then my Fair Values will likely rise as well. |
Bottom Line |
![]() 5G could be a catalyst for profits, but right now I’m only seeing 20% profit growth expected for this fiscal year. AAPL stays at 8th in my Conservative Growth Portfolio Power Rankings. Although the upside doesn’t seem like much, I think it will be easy for the company to beat profit estimates. iPhone was the only division that didn’t deliver at least 16% revenue growth last qtr. AAPL isn’t part of my Growth Portfolio because its Estimated Long-Term Growth Rate is just 13%. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 8 of 34 |