AAPL Stock: Is the Worst Over for Apple Inc.?

AAPL Stock Best Tech Stock for the MoneyIn case you haven’t noticed, the beaten-down Apple Inc. (NASDAQ:AAPL) stock is on its way back up. In the last 30 days, Apple stock has climbed 8.7%. The best part is that for the largest company in the world by market cap, the worst might be over.

AAPL Stock: Best Tech Stock for the Money

Of course, when it comes to growth prospects, Apple might not look as attractive as some other tech giants. I mean, the bulk of its revenue comes from selling “iPhones” and in the past few months, the word around the water cooler is that growing iPhone sales might not be that easy.

But this does not change the fact that the company offers great value for investors’ money. Trading at $101.81 a share on Friday morning, Apple has a price-to-earnings multiple of just 10.82. Moreover, AAPL stock pays a quarterly divided of $0.52, translating to a decent yield of 2.04%.

Most recently, sentiment started to change. Credit Suisse analyst Kulbinder Garcha maintained an “Outperform” rating for Apple stock with a price target of $140.00. That’s 37.5% higher than where the stock is today. (Source: “The Worst of Apple’s iPhone Slump Might be Over,” Business Insider, March 10, 2016.)


The analyst said that “iPhone supply chain orders are indicating things may be better than feared.” In Credit Suisse’s view, “this improvement could be the first positive movement since the Apple iPhone supply chain cuts began late last year.” (Source: Ibid.)

Going forward, Apple is going to launch several new products at a media event on March 21. The company is expected to announce a new four-inch “iPhone 5SE” and a 9.7-inch “iPad Pro.” The smaller iPhone would replace the “iPhone 5s” as the most affordable entry-level iPhone. (Source: “Coming at Apple’s March 21st Event: 4-inch iPhone SE, 9.7-inch iPad Pro & New Apple Watch Models,” 9to5mac.com, March 11, 2016.)

While the iPhone 5SE won’t be Apple’s flagship model, it could give a solid boost to the company’s financials. According to RBC Capital Markets analyst Amit Darynani, the smaller iPhone would net 10 million unit sales this year. At an average selling price of $550.00, the four-inch device would contribute $5.5 billion to Apple’s revenue. (Source: “New 4-inch iPhone Expected to Add $5.5 Billion in Sales for Apple,” Apple Insider, March 8, 2016.)

The Bottom Line on AAPL Stock

Finally, keep in mind that while moonshot projects look cool, a company has to make money at the end of the day. When it comes to the ability to make money, few devices can match that of the iPhone. Investors looking for value in today’s bloated tech sector should take a serious look AAPL stock.