Apple has been a must-own stock for many years now, and the world’s most valuable company appears to be establishing itself as a strong buy and hold candidate for the coming decade as well, Zacks’ Benjamin Rains writes. “Apple wowed Wall Street with its third quarter fiscal 2020 results at the end of July and it made a move that could make its stock even more enticing to a wider array of investors. And that’s just the start of it.”
Apple now has revenue streams coming from its massive App store, as well as its various subscription services such as Spotify SPOT competitor Apple Music, its streaming TV service, news offering, video gaming, and more.
In fact, Apple’s paid subscriptions grew by more than 35 million sequentially to reach over 550 million across its various services, up 130 million from the year-ago period. And executives said on its earnings call that they remain confident Apple will hit its increased target of 600 million paid subscriptions before the end of the 2020 calendar year. Apple also grew its revenue across all of its geographic segments.
Like it or not, people are addicted to their phones and consumer tech. This trend is unlikely to reverse course. And Apple is set to sell some of the most expensive smartphones and devices, as well as many of the various offerings and services people use on a daily basis. Plus, it’s ready to make more of the internal components.
Let’s also not forget that Apple pays a dividend, buys back a ton of stock, and has loads of cash that will help it venture into whatever new areas might be next.
Investors must remain diligent, and buy and hold forever doesn’t mean buy and forget. But Apple appears to be a solid candidate to buy and hold tight, even at its new highs.
MacDailyNews Take: Apple stock remains undervalued.