Apple is set to report results for its fiscal fourth quarter on November 3rd. Shares have pulled back in recent months. Is this a buying opportunity?
Daniel Spark for The Motley Fool:
One aspect of Apple stock that may often be overlooked is just how strong the company’s financials are… Apple’s business, which boasts a loyal and growing customer base with over 2 billion active devices, throws off more than $100 billion of free cash flow annually.
Then there’s the company’s extraordinary balance sheet. Apple wrapped up its most recent quarter with $166 billion in cash and marketable securities. Net of its debt, it boasted $57 billion of cash.
Considering Apple’s healthy balance sheet, strong cash flow, and robust growth in services and emerging markets, the stock’s current valuation of less than 30x earnings is a reasonable price to pay for shares. Sure, the stock isn’t a bargain at this level. But it’s cheap enough to likely reward investors who buy today and hold for the long haul.
MacDailyNews Take: As always: Accumulate, accumulate, accumulate.
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Stock is near the peak from 2 years ago. Should have taken some profits at 190+ in July, might do it now. AAPL isn’t breaking 200 for a few years, probably looking at sub 150 once Israel blows up the world and the recession/depression kick in.
-AAPL investor since 2010
Then short it, big mouth.
Good read. I like that you took the time to go into detail. Will set the calendar to November 3rd.