“Apple shares jumped Wednesday to touch yet another new high,” Benjamin Rains writes for Zacks. “Aside from buzz surrounding its new iPhones and its updated Apple Watch, Apple stock looks like a buy even as its stock price continues to climb.”
“The iPhone will remain Apple’s single largest money maker for the foreseeable future, but the company’s Services unit, made up of AppleCare, Apple Pay, and Apple Music, has grown. Last quarter this key division’s revenues jumped 31% to $9.548 billion,” Rains writes. “Investors should be pleased as the fintech industry and the streaming music market look poised to expand. Plus, Apple’s less-talked-about ‘Other Products’ unit, which features AirPods, Apple TV, Apple Watch, Beats products, and HomePod, also climbed 37% to reach $3.74 billion. And Apple’s plan to enter the streaming TV market could prove to be a game-changer for the company as its service could easily thrive alongside Netflix, Amazon, Hulu, and Disney.”
“Our current Zacks Consensus Estimate is calling for Apple’s fiscal fourth-quarter revenues to jump nearly 17% to hit $61.40 billion. At the other end of the income statement, Apple is expected to see its adjusted Q4 earnings surge by roughly 33.8% to hit $2.77 per share. Meanwhile, Apple’s full-year EPS figure is projected to climb by 27.7%,” Rains writes. “This strong earnings revision trend helps Apple earn a Zacks Rank #2 (Buy). The company also boasts an “A” grade for Momentum and a “B” for Growth in our Style Scores system. Therefore, Apple stock might be worth buying even at its new highs because it looks poised to grow and expand into booming industries.”
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MacDailyNews Note: Apple is set to release Q418 results on Thursday, November 1, 2018 at market close and will hold a conference call with analysts shortly thereafter at 2:00 p.m. PT / 5:00 p.m. ET.