Zacks: Apple still has room to run

Apple  Fifth Avenue
Apple Fifth Avenue

Tirthankar Chakraborty, Zacks Investment research:

Apple Inc had a terrific 2019. Shares of the iPhone maker surged 86% to close at $293 a share last year, making it the best-performing stock listed on the Dow. And the stellar run is far from over. In fact, renowned tech analyst Gene Muster expects Apple’s worth to reach more $100 this year.

What’s more, Apple is expected to be the best FANNG stock this year. This is because the iPhone maker will continue to benefit from momentum in its non-iPhone businesses, particularly Services and Wearables, strong adoption of Apple Pay and a growing Apple Music subscriber base.

In the wearables pace, Apple Watch continues to dominate the global smartwatch market. After all, Apple Watch’s market share surged to 48% in the third quarter of 2019 from 45% in the second quarter. Notably, the company expects to be a market leader in the wearables segment in 2020 after it recently released AirPods Pro, known for its noise-canceling features.

Needless to say, the company has done so well in 2019 that its goal of $51 billion in services revenues is much within reach. At the same time, Apple’s incredibly strong financials on profits of more than $10 billion in each of the past four quarters make us believe that its business is still strong and its stock will only go up.

MacDailyNews Take: Make it so!

Read Zacks’ full “Top Tech Predictions for 2020” here.

4 Comments

  1. Apple succeeds because it usually follows a simple strategy… Do something different AND build on past success. A competitor then tries to copy Apple’s innovation and fails, because they often need to start from “scratch.” Example, Microsoft’s Zune didn’t have iTunes, which made iPod a huge success; they had to create an iTunes copy (complete with Music Store) concurrently with launching Zune.

    AND no one else had iTunes, iPod, or Mac, which jump-started iPhone (the OS X mobile phone, Internet communicator, and best iPod ever) as a new player in a crowded field. iPad and Watch builds on success of iPhone; the Android-powered competition is fragmented and helpless. And so on, into the future…

    Very few companies have Apple’s long-term discipline and vision. That’s the true legacy of Steve Jobs.

  2. MDN: …Gene Muster expects Apple’s worth to reach more $100 this year.
    Guessing you mean “$100 more”

    MDN: …the best FANNG stock this year.
    Guessing you mean FAANG.

  3. It seems highly unlikely Apple will be the best performing FAANG for 2020. That would mean either Apple would have to run up two consecutive years in a row or the rest of the FAANGs would have to greatly underperform. Excluding Apple, the rest of the FANG stocks are being touted to have very high gains this year as far as price targets go. Only AAPL is being considered as a little or no growth stock. None of the other FANGS are said to be overvalued as Apple is. Apple’s price targets are all over the place and has an average price target lower than its current price.

    Apple is a stock of contradictions despite its cash, its dividends and stock buybacks. I find the whole Apple valuation thing a puzzle beyond my understanding. Apple seems as though it’s performing well as a company but quite a few analysts regard Apple as overblown crap not worth owning. That’s as flaky as hell, to me. With as much cash as Apple has, what can’t it do to improve itself. It just seems as though there is a lot of potential in Apple, so why wouldn’t it be at least worth owning.

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