Stock (Symbol) |
Apple (AAPL) |
Stock Price |
$143 |
Sector |
Technology |
Data is as of |
September 22, 2020 |
Expected to Report |
October 27 |
Company Description |
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Sharek’s Take |
![]() And the company already has high momentum going into these new launches. Last qtr, Apple delivered super results with iPhone revenue up 50%, with Mac up 16%, iPad up 12%, wearables up 36%, and services up 33%. Overall, profits jumped 100% from the year-ago period, as revenue soared 36%. Last qtr’s results were truly amazing. Each geographic segments achieved double digit record revenues last qtr, with each rising at least 28%. Here’s some AAPL stats from last qtr:
Apple stock has an Estimated Long-Term Growth Rate of 18% a year, in addition to a yield of less than 1%. And with a P/E of 25, the shares are very reasonable. 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. Last qtr, management repurchased $23 billion of its common stocks and paid dividends of $4 billion. AAPL is part of the Conservative Growth Portfolio. |
One Year Chart |
![]() The Est. LTG of 18% is very good for a conservative growht stock, but its not the 20% growth I like for a traditional growth stock. AAPL has a Fiscal Year-End on September 30th. That’s tomorrow. Thus, I’m looking ahead to 2022 estimates when calculating my P/E in this chart. |
Earnings Table |
![]() Sales growth was driven by growth in all Products and Services categories. iPhone net sales increased due to higher sales of new iPhone 12 models. Mac net sales increased due to higher sales of MacBook Air and iMac. iPad net sales increased due to higher sales of iPad Air. Wearables, Home, and Accessories net sales increased due to higher sales of Apple Watch and accessories. Services net sales increased due to higher sales from advertising, App Store, and AppleCare. Annual Profit Estimates increased across the board. Do notice next year’s profits are expected to cimb just 2%. That seems way too low. I think management is setting up to underpromise and overdeliver. Qtrly Profit Estimates are for 68%, 11%, -9%, and -9% growth the next 4 qtrs. I double growth will go negative 3QtrsOut and 4QtrsOut. Momentum is strong. |
Fair Value |
![]() I feel this stock is worthy of a 30 P/E, which equates to $172 a share this year and $179 next year. But I will likely bump up next year’s price target in the upcoming qtrs as I think profit estimates will continue to climb. |
Bottom Line |
![]() This company has some serious momentum right now. And more improved products are coming within months. These should provide fueld to keep the growth going. I think the stock will continue to trend higher. AAPL remains at 6th in the Conservative Growth Portfolio Power Rankings. I increased my position last qtr. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 6 of 37 |