“Apple Inc. shares have gained 45% in 2017 and sit just below all-time highs, yet Apple’s stock still looks like a bargain buy for both the short and long haul,” Dan Burrows writes for Kiplinger. “The iPhone maker is back on track, has more cash than ever and boasts a solid – albeit short – record of raising its dividend.”
“Most importantly, consumers have taken to the latest iteration of the iPhone, which is the company’s most important product by far. Indeed, thanks to its 10th-anniversary iPhone X, ‘Apple is getting its mojo back,’ say analysts at UBS, who have a ‘Buy’ rating on AAPL,” Burrows writes. “‘Underlying demand is strong and not just for the iPhone,’ UBS analysts note. ‘iPad has turned the corner with two periods of growth, Macs surprised to the upside (in the quarter ended Sept. 30), Apple Watch units jumped by over 50%, and services (such as Apple Music) increased by 24%.'”
Apple’s liquid holdings are legendary. The tech behemoth had $268.9 billion in cash, cash equivalents and securities as of Sept. 30. Much of that cash is held overseas, but proposed tax legislation working its way through Congress – specifically, a low one-time repatriation rate that could drastically reduce the taxes Apple would pay on it – could prompt Apple to bring some of that hoard back home,” Burrows writes. “Repatriation holiday or not, Apple’s cash situation gives it tremendous flexibility. Raise the dividend? Buy back stock? Execute a bold acquisition? Apple can afford all three.”
Burrows writes, “It’s not often you can say this about any of the best stocks in tech, but the share price is right.
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MacDailyNews Take: AAPL, as ever, remains significantly undervalued.