Apple Inc. (AAPL:NSD) Bullish signals detected

STA Research
by: STA Research
Apple Inc.

Based on the Apple stock forecast from 19 analysts, the average analyst Apple stock price target is USD 182.67 over the next 12 months. Apple Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own Apple stock forecast is Slightly Bullish, which is based on 10 positive signals and 5 negative signals. At the last closing, Apple stock price was USD 157.35Apple stock price has changed by +2.00% over the past week, +19.91% over the past month and +8.04% over the last year.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was incorporated in 1977 and is headquartered in Cupertino, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

The Apple stock price has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The Apple stock price history displays stable and consistent annual returns as compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns:

The Apple stock price has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity:

The Apple stock forecast has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The Apple stock forecast has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The Apple stock forecast has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The Apple stock price had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The Apple stock price had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth:

The Apple stock price has shown top quartile dividend growth in the previous 5 years compared to its sector.

 

What we don’t like:

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value:

The Apple stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The Apple stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Apple stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

The Apple stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.