Apple is an exceedingly well run company with attractive profit margins, a wide economic moat, and a loyal customer base, George Budwell writes for The Motley Fool. In addition, Warren Buffett’s Berkshire Hathaway owns an enormous stake in the tech giant.
George Budwell for The Motley Fool:
If you’re looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (AAPL). The tech giant is the largest holding of Warren Buffett’s Berkshire Hathaway, accounting for a whopping 47% of its stock holdings at last count.
Wall Street analysts project that the tech behemoth will grow its revenue by 6.7% in 2024. Mid-single-digit revenue growth is a remarkable achievement for a company with market value of over $3 trillion as of this writing.
One of the key advantages Apple has over its competitors is its extremely loyal customer base… Apple’s loyal customers are willing not only to buy its hardware products but also its lineup of popular services…
Despite its strong performance and growth prospects, Apple’s stock is not overly expensive compared to its peers. At present, Apple’s stock is trading at 29.6 times projected earnings. For comparison, Microsoft shares trade at over 30 times projected earnings, and Amazon shares exchange hands at over 82 times forward earnings. Apple’s shares, in turn, are reasonably valued for a high-growth tech company.
So if you’re looking for a stock that can deliver long-term value and income, you might want to follow Buffett’s lead and buy Apple hand over fist right now.
MacDailyNews Take: Apple remains undervalued for myriad reasons from Android slowly bleeding hare to the one and only iPhone to Apple’s strongly growing suite of services: Apple One, AppleCare, iCloud, Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, Apple News+, Apple Podcasts, Apple Books, etc.
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MDM, you left out a HUGE one (undeserving of “etc”):
“Apple <b>Financial</b> Services.”
ApplePay, launched in the Fall of 2014 became ubiquitous in just a few years. Today, with my GS Apple CC, I get free 12-month financing on any Apple product, and 3% back turns into Apple Cash that goes into my Apple Savings Account which earns 4.15%.
There have been bumps, and there will be more, but on the whole, Apple has done a surprisingly good job over all moving into brand new industries. FinTech is no exception.
A recent article in MoneyWatch (By Yuval Brisker––which you can find in your Apple Stocks app) says Apple (along with Amazon & Walmart) are becoming a threat to bank-stock investors.
“Retail giants want to be big in banking without becoming banks, selling financial services in addition to consumer goods….the want to drive revenue without being beholden to a middleman.”
I’m curious when Apple might acquire Yahoo Finance and allow users to have their own portfolio trackers through the Apple Stocks app. Perhaps partner with a brokerage, or?…
Apple is nearly half of the entire Berkshire Hathaway portfolio and its primary driver.
Even nonagenarians get it. 👴🏻 👵🏼