There’s a reason why Apple (AAPL) is currently the largest stock and richest company in the world. Apple is indeed one of the best stocks to buy right now.
Here are my main issues from this giant product and service company –
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As you may already know, Apple has over $260 billion in cash reserves and pays a dividend of just over 1.5%. Apple has set aside a fixed amount for stock buybacks, which should only increase the stock price.
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Apple’s most trusted and iconic iPhone sales will never fade, iPhone sales may go up or down, but the product is here to stay with Apple’s rich ecosystem and product integration. Apple fans are loyal and love the experience and the rich UI/UX.
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Apple’s services revenue is up year over year and this trend is only expected to continue as more people continue to buy and use Apple products – iPhone, iPad, Mac, etc. Apple’s service revenues are already worth the value of Fortune 100 companies and will soon eclipse iPhone revenues (which are currently the highest). Service revenues come next.
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Apple Music, Apple TV and Apple Watch – Sales figures are comparatively lower than iPhone and Services, but are expected to increase in the future. Expect original content shows in Apple Music and watch for updates this year.
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Apple’s adventure in AR, the new OLED iPhone and the new watch expected at WWDC should only improve things.
Quick Stats and Important Metrics from Apple’s Second Quarter 2017 –
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iPhone – 24,846 units sold last quarter, increase of 3%
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iPad – 4,969 units sold last quarter, increase of 2%
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Mac – 5,592 units sold last quarter, 7% increase
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Services – 7,266 million in revenue last quarter, increase of 22%
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Product sales in the rest of Asia Pacific and Japan increased 15% and 3%, except declines in China.
Apple provides the following guidance for its fiscal third quarter 2017:
1. revenue between $43.5 billion and $45.5 billion
2. gross margin between 37.5 percent and 38.5 percent
3. operating expenses between $6.6 billion and $6.7 billion
4. other income/(expenses) of $450 million
5. tax rate of 25.5 percent
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In conclusion, Apple stock is very strong, extremely stable and one of the best investments on the market. Continue to buy stocks on a downturn and your investment should only grow. AAPL stock is a must-buy and permanent hold in any portfolio! Apple is definitely one of the best stocks to buy right now, the statement holds today, tomorrow and a year later.
