TipRanks: An Apple stock breakout on the upside seems imminent

Even at current market valuations, there are quality stocks available at attractive levels. Apple stock is one name that seems to be worth considering, Faisal Humayun writes for TipRanks.

Why Apple stock is struggling

Faisal Humayun for TipRanks:

Amidst some volatility, AAPL stock has been largely sideways in the last three quarters. With strong revenue growth, a breakout on the upside seems imminent…

The key point to note is that Apple has high financial flexibility. It’s likely that dividends will continue to increase on a sustained basis. Furthermore, Apple will continue to pursue aggressive share repurchases. AAPL stock seems equally attractive for growth and income investors.

A strong liquidity profile has also enabled Apple to pursue innovation-driven growth that’s not limited to just iPhones and iPads. Apple is likely to become a significantly diversified company in the next five years…

AAPL stock has been in a consolidation mode, and the price range of $110 to $133 might serve as a support zone from a technical perspective. Considering the company’s growth and expansion plans, it makes sense to patiently wait for a strong break-out on the upside.

MacDailyNews Take: Patience, Padawans. Good things come to those who wait.

6 Comments

  1. Share buybacks? Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha !!!!!!!

    Only a cretinous ape thinks share buybacks do ANYTHING for shareholders. The market will take back with a vengeance whatever small bump a buy back delivers. Apple has been buying tens of billions of dollars worth of shares the past 6 months. All that cash incinerated. Nothing delivered to the shareholders.

    Apple had one of the worst dividend increase too. Not even 1%.

    The owners of the company get peanuts.

    1. Nonsense. You and the 78 other sycophants are utterly clueless about finance. Buy backs give NOTHING to shareholders. Buybacks do nothing but incinerate cash. FACT.

        1. Most people understand the theory of stock buybacks but there’s a reason they used to be illegal. Company insiders cannot be trusted to honestly “buy low and sell high” when their personal enrichment can be enormously increased with their easy access to insider information. So buybacks, to be legal, are scheduled and therefore attempting to be transparent and fair. I am not convinced that the primary driver for buyback programs isn’t to goose stock prices to achieve executive bonuses, full stop. Let’s not pretend Timmy or Cue-ball or Fatass Schiller or Emptysuit Ahrends or flat white alyumium Ive truly earned their insane rewards. They simply were in the position to pocket the money instead of sharing it with stockholders. So no, Apple should NOT be able to play market day trader — which is, literally, a parasite.

          The disgruntled Tim Apple character has a point, that the charter of a corporation is supposed to include benefits to shareholders. Stock buybacks are one of the most inefficient ways to reward shareholders. Better than blowing it on executive excess, but still. They are the signs that a company has run out of good R&D investments. It makes no sense for Apple to play low-yield financial games when their product profit margins are so thick. That is not a good use of capital. Unfortunately this does seem to be the case at Apple, where the billionaire executives have, in most areas, been coasting with incremental products, developer-harming app stores, and most clearly no attachment to the real world as judged by many product features and prices. They are busy playing stock games for fun and self enriching rather than diversifying supply chains, expanding global distribution, owning their own data servers, or truly expanding the product lines to where they used to be. Maybe that’s why cloud service companies are looked on an much better investments. Apple missed that boat and rents space from AWS, Google, and MS/Azure. What a true waste of Apple money, renting from the likes of them.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.