The stock market closed higher on Monday after Wall Street’s worst week of the year. Investors now await inflation reports due this week.
Overall, S&P 500 and NASDAQ grew 1.2% to 5,471 and 16,885, respectively.
Tweet of the Day
Arista Networks $ANET is really the steady eddie of networking stocks.
ANET has been delivering around 30%-plus profit growth a quarter while the stock has risen at a steady pace during the past year.
Profits were +33% last qtr on 16% revenue growth. P/E is 43, which is fair.— David Sharek (@GrowthStockGuy) September 5, 2024
Chart of the Day
Here is the ten-year chart of Apple (AAPL) as of August 6, 2024, when the stock was at $207.
Apple is ramping up for its artificial intelligence (AI) equipped phone, the iPhone 16, which is expected to launch a little more than a week. The company has been ordering parts for what it expects to be 10% or more new iPhones than last year. What is nice about Apple’s stance on AI is that the company can just charge AI app developers to use the iPhone and avoid a lot of development costs itself.
Meanwhile, Apple is growing around 11% now. Profits grew 11% last quarter with analysts expecting around 11% profit growth for the next four quaterrs. Analysts also have an 11% Estimated Long-Term Growth Rate on the stock. So for now, this is an 11% grower with a potential catalyst in AI that might accelerate growth.
AAPL is on the radar for the Conservative Growth Portfolio. David Sharek, Founder of School of Hard Stocks, does not think that the stock is a good value this quarter.
