Apple Inc. (NASDAQ: AAPL) ended at $229.00 on the 20th of Nov, 2024, up 0.32%. The stock's 52-week range is $164.08 - $237.49, reflecting its robust performance in the past year.
Year-to-date (YTD) Return: +19.53%
1-Year Return: +21.31%
5-Year Return: +254.81%
However, in reference to the S&P 500 index one year return of +31.08%, analysing Apple’s long-term growth proves its potential among investors.
Apple is still a strong financial power that demonstrated high profitability coefficients and the leading market position.
Market Cap: $3.462 trillion
Profit Margin: 23.97%
Return on Equity (ROE): 157.41%
Revenue (TTM): $391.03 billion
Net Income: $93.74 billion
Apple has levered free cash flow (TTM) of $110.85 billion which confirms strong financial position and capacity to finance its expansion and rewards shareholders.
Apple made a $100m offer to create one plant in West Java, Indonesia for assembling gadgets. This arises at a time when Indonesia prohibited sale of iPhone 16 due to Apple's inability to meet the country’s local content requirements.
The capital investment shows Apple is interested in extending its market presence in the Southeast Asian market due to its growth prospects. It also complements Apple’s plans that aim at decentralizing its production other than in Malaysia, the conventional Asian powerhouse.
Some of the big executives who have sold their stocks include CEO Tim Cook, who has cut his stake by 6.39% in the past three months contributing to more than $92 million. Despite getting to the headlines sometimes, the insider trading should be understood in the context of corporate governance and Personal Financial Planning.
Apple was last quarterly paying $0.25 per share, which makes its yearly dividend yield at 0.44%. Other than the payout ratio of 16.45%, there is scope for further growth of the dividends paid out by Apple.
Apple’s stock has been in a bullish trend, trading near its all-time high of $237.49.
Resistance Levels: $237.50 and $244.48 (1-year target estimate)
Support Levels: $221.00 and $215.00
While the short term outlook remains optimistic, the stock might experience short term pressure at the upper end of the 52 week high. All the same, a pullback to support levels would be attractive for newcomers who would be joining the market in hope to launch their investments.
Brand Strength: Apple continues to dominate the market of consumer electronics and digital services.
Financial Health: Exceptional profitability and strong free cash flow.
Growth Opportunities: Going deeper into Indonesia as an emerging country and expanding in production.
Dividend Stability: Another primary driver is a low payout ratio, which still leaves room for its expansion.
High Valuation: Higher than the S&P 500 sector average of a P/E ratio (TTM) of 37.60.
Regulatory Challenges: Global compliance concerns, especially in nations such as Indonesia.
Insider Selling: Some investors may be worried when executives sell shares in their companies recently.
While it’s still a good long-term stock, there’s not much incremental value left in Apple in the short-term. Over-accumulation of shares might compel investors to consider acquiring shares on dip specially in near support levels of $210-$225.
Apple Inc. remains focused and strong, and it proves its ability to be a leading technology company all over the globe. The lower price is justified, however it still seems to be on the higher side compared with the company’s peers, the strong financials along with excellent and sustainable growth prospects in such countries as Indonesia make it a long term investment.
Monitor developments related to the iPhone 16 ban and insider transactions for additional insights into the stock's future trajectory.