Throughout 2023, Apple (AAPL) introduced a range of fresh software and hardware products, including Apple Vision Pro, iPhone 15, Mac Pro and many more. The company also has ambitious plans to introduce several new products, including the highly anticipated Apple Car and a smart home device.
Beyond these product launches, Apple is also diversifying its offerings into new sectors, such as healthcare and education – it has introduced Apple Music Classical in 2022 and is expected to roll out Apple Pay Later late this year.
Despite all innovative developments, Apple shares faced a 1.47% decline, closing at $172.88 this week. This marks the longest losing streak since January 2022 and can be attributed to several factors, including concerns raised by Wall Street analysts regarding global iPhone demand.
Nevertheless, Apple achieved a historic milestone in July 2023, becoming the first company ever to reach a closing market capitalization of over $3 trillion. This accomplishment is significant for the Cupertino-based tech giant, which had previously set the precedent as the first company to attain market caps of $1 trillion and $2 trillion.
Interestingly, Apple stands as the largest holding within Berkshire Hathaway’s portfolio. With an ownership stake of nearly 5.9%, Berkshire Hathaway ranks as the second-largest shareholder of Apple, trailing only behind Vanguard in terms of ownership.
Wall Street’s projections on Apple
A synthesis of projections from 29 analysts on TipRanks over the previous quarter indicates a 12-month average price target of $207.51 for Apple. This suggests a potential upside of 20.03% from its current trading price, leading to an overarching moderate buy recommendation. In the current month, AAPL has received 19 Buy ratings, 9 Hold ratings, and 1 Sell rating.
For the next quarter, Apple is estimated to have earnings per share (EPS) of $1.39, with a range between $1.35 and $1.45. In the previous quarter, the EPS was $1.26. Over the past 12 months, AAPL surpassed its EPS estimate 75.00% of the time, while the overall industry beat the EPS estimate 61.58% of the time during the same period. In the last calendar year, Apple has consistently outperformed its overall industry.
The average analyst price target for Apple in the past 3 months stands at $207.51, indicating the price level that analysts, on average, expect the stock to reach. This price target can be a useful reference for investors and traders looking for guidance from financial experts when making investment decisions.
Is Apple a buy right now?
Despite the recent 1.47% decline in the stock’s performance over the past week and the shifting sentiment among analysts toward a more negative outlook, it’s important to recognize that the fundamental value of the company remains intact.
The innovative nature of Apple’s business, coupled with its history of groundbreaking products and services, is expected to sustain its position and growth in the market.
Apple’s ability to continually innovate and adapt to changing consumer preferences has been a hallmark of its success. While short-term market fluctuations and analyst sentiment can influence stock prices, the company’s long-term prospects and its commitment to delivering cutting-edge technology make it a resilient and influential player in the tech industry. Investors often consider these fundamental strengths when evaluating their investment strategies.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.