Stock Analysis: Apple (AAPL)

Apple Inc. (AAPL) designs, manufactures, and markets consumer electronics and computers, and has developed its own proprietary iOS, Mac OS, TvOS and Watch OS operating systems and related software platform/ecosystem. Revenues are principally derived from the iPhone line of smartphones, Services, hardware sales of the Macintosh family of notebook and desktop computers, iPad tablets, and wearables.

Merrill Lynch Company Description

If you look around you see Apple products everywhere ranging from handheld smartphones to tablets and wearables. I had been an Apple user since the first generation smartphone, and I switched to Samsung last month. Let’s first take a look at Apple’s financial performance overview otherwise known as the fundamentals:

Merrill Lynch Analysis

Strong fundamentals including Gross Profit Margin and Long Term Debt to Equity Ratio, efficient operating ratios and fantastic return on invested capital.

Stock Analysis Overview – 5 Component Theory

52 Week Range: $53.15 – $137.98

Beta: 1.12

Dividend Yield: 0.68

Historical Performance: (+314.61%) Past 5 Years

Fundamentals: Strong

Yahoo Finance 12/1/2020

Michael’s Rating: A Buy and Hold. This stock has strong historical performance and fundamentals to support the business initiatives. With the large market share and customer loyalty Apple is here to stay. The Relative Strength Index of roughly 61.35 indicates the stock is closer to being overbought or overvalued. This has no bearing on its long-term performance however. The beta of 1.35 indicates that the stock is more volatile than the market, so Apple poses more risk but greater reward. This is a perfect stock for someone who is 30+ years away from retirement.

*This is not financial advice nor am I a financial advisor

Happy Investing,

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