Apple is one of the stock market’s blue chip stocks, and has had a very interesting year. From the COVID pandemic, to issues with China, to the stocks’ recovery and subsequent split, Apple has proven to be as resilient and as strong as ever.
With the recent release of its new Apple Watch and iPad Air, to great reviews, Apple is set to take on the rest of 2020 by storm. In fact, its Apple Watch has now overtaken the entire Swiss watch market in terms of watches shipped. Once Apple releases its new iPhone in November, they could really close this turbulent year out on a high note. However, is Apple truly a strong buy right now?
The stock has strongly performed this year, but headwinds still remain. It has underperformed ever since its stock split at the end of August, and technical indicators are not looking great at the moment. Furthermore, there are macro headwinds as well, as Tech has struggled mightily over the course of the last few weeks. Economic indicators are still questionable, and nobody knows what will happen with relations with China, a crucial market for Apple on the supply and demand side.
Qai’s deep learning algorithms are very interested in the current state of Apple’s stock, as well as future projections. And, as a company that provides investing advice to millions around the globe, we think you should be, too. Our Artificial Intelligence (“AI”) scours financial data of more companies than you can count – and we’re ready to share our results.
Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.
Apple closed down 1.6% yesterday. Ever since the stock split almost 3 weeks ago, the stock has not performed very well, reflecting the broader Tech slide as well. Its closing price of $110.34 yesterday is considerably below its 10-day price average of $115.08 and its 22-day price average of $120.29.
The stock, however, has proven to be resilient and strong, and is up 46.94% for the year. People are eagerly anticipating its new iPhone announcement, and that’s evidenced by its trading volume of 174,751,401 yesterday.
Apple is innovative and financially strong. Revenue was $260174.0M in the last fiscal year compared to $229234.0M three years ago, Operating Income was $63930.0M in the last fiscal year compared to $61344.0M three years ago, and EPS was $2.97 in the last fiscal year compared to $2.3 three years ago.
In addition to its financial stability, Apple has shown stable growth in the past and is forecasted to show solid stable growth in the future. Revenue grew by 5.26% in the last fiscal year and grew by 19.47% over the last three fiscal years, Operating Income grew by 5.02% in the last fiscal year and grew by 9.45% over the last three fiscal years, EPS grew by 10.89% in the last fiscal year and grew by 43.16% over the last three fiscal years. ROE was also 55.92% in the last year, up from its ROE of 36.87% three years ago. The company’s Forward 12M Revenue is also projected to grow by 8.79% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.17.
So, What’s the Verdict?
Q.ai is here to help you break through the clutter and nonsense, and one of the easiest ways to do that is to provide a simple scorecard. For Apple, our ratings are relatively mixed. Our AI systems rated Apple F in Technical, however, we have given the company scores of B in Growth, C in Momentum Volatility, and B in Quality Value.
Although the stock’s technical score is not good at the moment, and it has underperformed since the stock split, the company’s financial position and track record speaks for itself. Q.ai has given Apple a Neutral rating for September, and cannot strongly advise investors to buy the stock one way or another.
Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.