Apple stock ana
1. Technology Sector
1.1. Apple Inc. (APPL)
Apple Inc. is a multinational corporation that designs, develops and sells electronics and technology products. The company went public on December 12, 1980, generated one of the biggest amount of capital from IPO in history. At the moment, Apple is the largest publicly traded corporation in the world by market capitalization. The company is driving highest profit out of mobile device industry, and expected to growth strongly in the future. After the launch of its new iPhone 5c recently, Apple’s stock price significantly dropped, as investors worry about the expensiveness of this new smartphone, but it has quickly recovered after that. Over the past 10 years, EPS increased steadily, reached the peak of $44.20 per share in 2012. Past 5 years EPS grew stably at annually average of 62.20% which is the highest out of 20 stocks from our stock screener. Apple’s projected growth is high but seems to be humble compared to its past performance, at 17.77%. ROE analysis and Margin analysis, especially net profit margin, also show good signal which increased steadily over the 10-year-period. Apple’s stock currently trades at quite high price of around $500 per share, but the PEG ratio shows at 0.68 indicating that the stock is relatively cheap at its growth level. Despite of being a growth stock, the company is offering dividend payout of 27.30%. Overall, the stock has outperformed its industry average in all of the growth indicators. The high potential risks, including highly competitive industry require high capital expenditures to stay innovative; product manufacturing and logistical services provided by outsourcing partners; and legal risk related to intellectual property rights, should be acknowledged by investors. We decided to pick Apple since it has very strong exposure into the mobile device sector with high growth potential, strong cash flows, strong competitive position, and a cheap stock right now.
(Refer to charts
1.1. Apple Inc. (APPL)
Apple Inc. is a multinational corporation that designs, develops and sells electronics and technology products. The company went public on December 12, 1980, generated one of the biggest amount of capital from IPO in history. At the moment, Apple is the largest publicly traded corporation in the world by market capitalization. The company is driving highest profit out of mobile device industry, and expected to growth strongly in the future. After the launch of its new iPhone 5c recently, Apple’s stock price significantly dropped, as investors worry about the expensiveness of this new smartphone, but it has quickly recovered after that. Over the past 10 years, EPS increased steadily, reached the peak of $44.20 per share in 2012. Past 5 years EPS grew stably at annually average of 62.20% which is the highest out of 20 stocks from our stock screener. Apple’s projected growth is high but seems to be humble compared to its past performance, at 17.77%. ROE analysis and Margin analysis, especially net profit margin, also show good signal which increased steadily over the 10-year-period. Apple’s stock currently trades at quite high price of around $500 per share, but the PEG ratio shows at 0.68 indicating that the stock is relatively cheap at its growth level. Despite of being a growth stock, the company is offering dividend payout of 27.30%. Overall, the stock has outperformed its industry average in all of the growth indicators. The high potential risks, including highly competitive industry require high capital expenditures to stay innovative; product manufacturing and logistical services provided by outsourcing partners; and legal risk related to intellectual property rights, should be acknowledged by investors. We decided to pick Apple since it has very strong exposure into the mobile device sector with high growth potential, strong cash flows, strong competitive position, and a cheap stock right now.
(Refer to charts