Do You Think Apple Stock Is A Good Buy Right Now?
Historically, Apple has performed well, and analysts recommend buying the stock. However, it would be best if you considered the context of your entire portfolio when making any stock purchase. Apple is a prominent technology company with a large market cap. The increase in Apple shares may seem like a great idea, but if you already hold ‘FAANG’ stocks like Facebook, Amazon, and Google, you might want to reconsider.
Meanwhile, Apple may be a good pick if you have a mix of stocks in various industries. A mutual or exchange-traded fund that owns Apple stock may be a good option if you prefer not to invest in individual stocks. There are multiple securities in a fund that come from many different companies and industries.
Due to their diverse holdings, investments in these funds are often safer than investments in individual stocks. The stock market is filled with tales about how rich people became by buying Apple stock early in the company’s history. In retrospect, this information might be helpful for investors, but they’re not time travellers.
Is Apple stock a good buy at the moment? Think about where the company is now and where it will go, not where it has been. All categories except iPad sales exceeded analysts’ expectations. We can draw some key conclusions from this study. Earnings per share (the amount earned in the quarter divided by the share count) were $2.10, up from the $1.89 expected.
Revenue increased by 11% to $123.9 billion, above the $118.66 billion expected. In the same period last year, iPhone revenues were $71.63 billion, an increase of 9%. The company pays dividends – most recently, $0.22 per share. There was an expectation of $68.34 billion. It was a good year for Apple overall. Some things are known about Apple’s future, even though it is difficult to predict.
Apple’s balance sheet had more than $195 billion in cash. Generally, companies with plenty of money do one of three things. There is a possibility that it will pay a dividend, which Apple already does. Yet it will still have quite a bit of cash on hand, so it could buy other companies or buy back its shares.
It has acquired about 100 companies in the last six years – one every three to four weeks, focusing on augmented and virtual reality, artificial intelligence, maps, health, and semiconductors. Besides stock buybacks, Apple has also repurchased almost $450 billion worth of stock in recent years. Apple’s outlook is pretty bright with such popular products and loyal customers. Apple’s current shortage of chips for iPhones and iPads could cause concern.
During Apple’s recent earnings call, CEO Tim Cook explained that supply constraints caused by chip shortages and pandemic-related manufacturing disruptions led to iPad sales falling short due to supply constraints. Often, companies announce results for their previous quarter and predict their upcoming performance.
As a result of the uncertainty raised by the pandemic, Apple has not done so recently. Looking at what the analysts predict about a stock can also give you an insight into its performance.
Investors can get their recommendations on whether to buy, hold, or sell stocks by following the performance of several companies in their industry. Yahoo Finance reported that 11 analysts rated Apple stock a ‘strong buy,’ 21 ordered it a ‘buy,’ and six rated it a ‘hold.’ None of the analysts identified Apple as an underperformer.
How To Buy Apple Stock?
It is necessary to go through a broker to buy Apple stock. Online brokers like E-Trade, Charles Schwab, or TD Ameritrade can be used to execute your trades. Brokers online offer low or no fees, but they aren’t helpful when picking stocks. Edward Jones or Morgan Stanley offers full-service brokerage services.
The fees charged by these firms are higher, but they can also provide advice and financial planning services. If you choose an option with a minimum balance requirement, you may have to maintain that balance to open an account. You will need to open an account and deposit money after you decide which broker to use. If you’re ready to begin buying, then the time has come.
A ticker symbol is necessary to purchase stock. In Apple’s case, this would be AAPL. As well as knowing the exchange on which the stock is traded, you will need to know the name of the stock itself. The Nasdaq exchange is where Apple is traded, as with many other tech stocks.
Your purchase will be made once you have decided how many shares you wish to purchase. There may be fees associated with each transaction, such as commissions and ticket fees. If you are paying for the shares, consider the fee amount you’ll be charged. If you want to buy and sell frequently rather than hold your investments for an extended time, you should consider the broker’s fees.
Waiting is the hard part. There is always going to be a fluctuation in the value of stocks over time, Apple included. There are risks involved with investing. That’s just the way it is. Historically, the market has always gone up over the long term, regardless of what a specific stock or the overall market does.
Ideally, it would help if you did not sell at the first sign of a decline, especially for a blue-chip stock like Apple. An effective way to invest has always been to hold stocks long-term and maintain a balanced portfolio.
Edited by Prakriti Arora
