Stock (Symbol) |
Apple (AAPL) |
Stock Price |
$123 |
Sector |
Technology |
Data is as of |
March 3, 2020 |
Expected to Report |
April 28 |
Company Description |
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Sharek’s Take |
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The 5G iPhone 12 has launched, and this is expected to be a catalyst for the stock in the coming year. The new phone sports incredible color, faster load times, increased durability and the iPhone Pro has a new depth sensor that produces 3d-like images, which you can check out here. The company couldn’t keep up with demand for the new Pro models, which should lead to better results later this year. Apple stock has an Estimated Long-Term Growth Rate of 15% a year, in addition to a yield of less than 1%. Management also buys back billions in stock. During the past two years (2018-2020) shares outstanding have decreased from 20 billion to 17.5 billion. AAPL is part of the Conservative Growth Portfolio. The stock has 15% upside to my 2021 Fair Value of $142. |
One Year Chart |
![]() The Est. LTG of 15% is up from 13% last qtr. Analysts are getting more positive on the stock’s profit prospects. |
Earnings Table |
![]() Annual Profit Estimates jumped higher this qtr. Especially this year’s estimates (which count the most). Qtrly profit Estimates are for 53%, 26%, 33% and -1% growth the next 4 qtrs. Note the 4QtrsOut estimate needs time to adjust as the company just beat the street and “last year’s comparison” will be the qtr it just reported. |
Fair Value |
![]() I feel this stock is worthy of a 32 P/E, which equates to $142 a share this year (+15%) and $150 next year (+22%). I think of this company as a 12-15% grower, so that’s good upside for me. I have tempered expectations. |
Bottom Line |
![]() 5G iPhones are out and they should help boost revenue growth percentages for the next three qtrs. And since profit estimates just increased, I believe that might become a trend in the short-term. In the long-run I think this is around a 15% grower. AAPL moves slightly from 9th to 10th in my Conservative Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 10 of 34 |