It has been a bumpy year so far for technology giant Apple. (Forecasts:analysts), but the company’s volatility has actually provided some great entry points for savvy investors looking for stocks to hold for the long term.
Apple’s stock suffered from concerns about the lackluster sales of the iPhone and the fall of the market in General, but these setbacks are likely to be short in aapl investors. So it makes sense to use the setbacks as an opportunity to pick up shares of a solid company with a loyal following.
A Wide Moat
One of the best parts of investing in Apple shares is the fact that the company has quite a wide moat — something that is hard to find in the tech space.
Apple found a way to create an ecosystem that is hard to refuse, and that gives the firm pricing and a lot of future security. Followers of the Apple loyal, and once you set foot in the world of products of the company, it becomes easier and easier to keep buying them because they all work together.
To take Wearables for example. Apple watch has been touted as the best smartwatch on the market, like tracking fitness and otherwise. However, you have to be part of the Apple ecosystem, in order to enjoy its benefits.
The iPhone x has received a lot of praise, but also for its advanced technology and improved camera. Apple is synonymous with good quality so people will probably buy in the ecosystem as a whole, because they believe that they get more what they pay for.
Growth for aapl
Huge concern was for aapl iPhone sales and whether the company can continue as an engine of growth investors have become accustomed. The answer to this question is not simple. Apple is much more Mature than it was 10 years ago, so its growth will not be as aggressive as it was before. With that said, there is still a huge podium in the future.
Not only Apple is making strides in the wearable space with its watch, but the company grows and its services with impressive speed. The subscription price becomes the main driver of revenue growth for Apple. The company now offers everything from cloud storage to streaming music platform, users can pay for monthly.
While sales of iPhones continue to make up a large part of the revenue of the company, in the second, and this number continues to grow. In the last quarter, Apple announced that its arm services saw an increase of 18% compared to the previous year.
Another reason to love Apple is that the company is a profit engine. The firm has always had an impressive margin, but increasing your hands of service should help this number even more.
Services Subscription surprisingly low shipping cost, making these monthly payments are a powerful driver of profits for Apple. As this segment continues to grow, we can expect that the profitability of Apple to grow along with it.
Apple also favorite investor because the management was extremely friendly to shareholders in the past. Company mountains of cash to make dividend payments is extremely safe, and most of them expected to see the firm’s 1.48% rise in the dividend yield in the next year.
Apple has benefited massively from new tax legislation that will allow companies to bring their overseas cash back to the U.S. for a much lower tax rate, and savings can be passed on to shareholders. Most expect 2018 to conduct campaigns of dividends and share buybacks, which reward the investors are waiting for the turbulence.
The bottom line on Apple shares
Apple’s stock is a solid long-term bet not only on its growth prospects, and because of the desire of the leadership to return to shareholders. The path of the company in recent months mean that the stock price does not fully reflect its potential.
The current stock price of aapl stock means the company is trading at just under 15 times expected earnings. This is significantly lower than the industry average of 19.28 and even lower than 16.6 times the broader market ahead of profit, and this figure is updated.
My colleague Luke Lango says shares in aapl fall below $160 before it becomes a compelling buy, and though it may be true that the shares will see more volatility before returning to the track, I believe shares of aapl is a great long-term stock even at its current level.
It is not reasonable to expect Apple to do it for $ 200 before the end of this year, which would represent almost a 15% growth potential.
At the time of this writing, Laura hoy long to review.