Currently, Apple stock is up a whopping 26% over the past couple of months. With the iPhone 14 series, AirPods Pro, and other wearables coming out, we should see a substantial increase in revenue and profits.
Research
Whether you are looking to invest in Apple stock or want to know a little about it, you need to be smart about your research. It is essential to be a savvy investor who understands the company’s finances, profitability, and management.
Apple is a technology company that designs the world’s best personal computers and mobile devices. The company is known for its products, including the iPhone, iMac, iPod, and iTunes. The company has a strong reputation and a loyal customer base.
In the fourth quarter, Apple reported 8% year-over-year growth, but revenue was down 15% from the same period in 2014. However, the company’s services segment is expected to see double-digit growth per year for the next five years.
PEG ratio
Using the PEG ratio of apple stock is not a foolproof way to determine whether you should invest in the company. However, it is a valuable tool when comparing shares of companies that are expected to grow in the future.
PEG is similar to the P/E ratio but adds a growth factor. The PEG ratio tells you how much it costs to buy a company based on its expected earnings growth rate. The higher the PEG, the more expensive it is. This is because investors are willing to pay more for a stock with high growth potential.
Earnings per share (EPS)
EPS is one of the most important metrics used by investors to evaluate a company’s profitability. It is calculated as net income divided by the number of outstanding shares of common stock. A higher EPS is a good sign that a company will likely be profitable. Conversely, a lower EPS may indicate a loss.
There are two types of EPS: Basic and Diluted. The former is a calculation of the company’s net income, and the latter is a calculation of the company’s dilution, which considers convertible securities, warrants, and stock options.
Future profitability
You can use Apple’s profitability analysis to determine whether the company’s profit is growing. This is important for business survival. A company that does not have a good outlook will generate negative long-term returns.
The growth in Apple’s service segment will drive strong growth in the bottom line. In addition, the company’s diversified new product revenue will help it continue to grow.
The company’s services business is the second-largest source of revenue behind the iPhone. It accounts for almost 19% of the company’s top line. It is expected to grow significantly faster than the company’s user base.
Wearables, home, and accessories unit
During the Apple stock fiscal fourth quarter, the company achieved an impressive feat: outsold its rivals by a factor of four. The company is rumored to have a secret weapon: a self-driving car. As a result, the company’s stock is up 7.6% in the next trading session.
One of the company’s many products, the iPad, suffered from a 10% decline in sales compared to a 2% decline in the year prior. However, its Wearables, Home, and Accessories segment also showed off some oomph in the form of a modest 8% increase in net sales.
iPhone 14 series
Despite a strong start, demand for Apple’s (AAPL) iPhone 14 and iPhone 14 Plus models have fallen short of expectations. Analysts say sales have been slower than anticipated and consumers are increasingly opting to wait until the company has enough stock to satisfy demand.
According to a report published by Bloomberg, Apple has backed off its plan to boost iPhone 14 production by six million units. Instead, it will aim to produce 90 million handsets for the second half of the year, which is in line with last year’s estimates.
AirPods Pro
Whether you’re looking for a new pair of earbuds or are just curious about what Apple has to offer, you’ll be pleased to know that the second-generation AirPods Pro is now on sale for a limited time. In addition, these splurge-worthy earbuds have been redesigned and come with many improved features.
The new AirPods Pro includes a touch control that lets you swipe the stem to adjust the volume. They also feature Adaptive EQ, which shapes the tonal output of the music to match your ear’s shape. They also feature an accelerometer that helps to filter background noise. These features work in conjunction with dual beamforming microphones, which transmit voice with clarity.