It is likely that Apple will reach $1000 somewhere between 2035 and 2040. However, this could speed up if Apple launches a new product category that can create an entirely new revenue stream for the company. The biggest risk for Apple is Tim Cook’s retirement.
Apple Stock Forecast 2023 is $185
The Apple Stock Price Target (by Analysts) for the next 12 months is $201
| Metric | Value | Trend |
|---|---|---|
| Current Price | $184.00 | Higher |
| Trading Volume | $51.8 M | Higher |
| Last 5 Days | -0.3% |
| Last 1 Month | -5.5% |
| Last 6 Months | +3.2% |
| Last 12 Months | +22.9% |
Apple Price Prediction: Apple has been more volatile in the past few weeks. It was showing mixed performance with some ups and downs from last 1 month.
Apple has been trading below $200. Currently, Apple has been trading at $183 and is expected to trade between $180 and $200 in the next few weeks.
UTC: Feb 23rd, 2024 12:15 AM
| Overall Outlook | Partially Bullish |
| 1. Market’s Wisdom | Bullish |
| 1a. Market Data | Bullish |
| 1b. Technical Recommendation | Neutral |
| 2. Crowd’s Wisdom | Neutral |
| 2a. Social Media Buzz | Steady |
| 2b. Social Media Sentiment | Steady |
Net Buy Rating = Buy% – Sell%
Tesla Stock Forecast 2023
| Apple Price Target | $214.8 |
| Rosenblatt | $189 |
| Wedbush | $240 |
| Morgan Stanley | $210 |
| Needham | $195 |
| Tigress Financial | $240 |
UTC: Feb 23rd, 2024 06:04 AM
Latest Earnings (Q3 2023)
Apple reported its fiscal 3rd quarter earnings and the company was able to beat the Wall Street earnings expectation while it met the Revenue expectation. The company reported an increase of 8% in sales which was mostly driven by services sales. Apple reported a drop in the iPhone revenue WRT to the last quarter. Here is a brief summary of Apple’s earnings with respect to the Wall Street expectation:
Apple’s revenue for the quarter was $81.80 billion, which slightly exceeded analysts’ expectations of $81.55 billion. However, this represented a 3.9% decrease compared to the same quarter last year.
The adjusted earnings per share (EPS) for Apple were $1.26, in line with analysts’ expectations of $1.20. This marked a significant 20.9% increase from the EPS in the same quarter of the previous year.
In terms of specific product revenues, iPhone sales amounted to $39.67 billion, slightly below analysts’ expectations of $39.79 billion, with a marginal 0.2% decrease from the previous year.
Services revenue reached $21.21 billion surpassing analysts’ expectations of $20.77 billion, showing a healthy 10.5% increase from the same quarter last year.
Mac sales brought in $6.84 billion, which was slightly higher than analysts’ expectations of $6.37 billion, resulting in a 6.2% growth from the previous year. On the other hand, iPad sales generated $5.79 billion, slightly falling short of analysts’ expectations of $6.33 billion, experiencing a decline of 19.5% compared to the same quarter last year.
As for wearables revenue, it amounted to $8.28 billion, just below analysts’ expectations of $8.38 billion, but still showing a decent 2.9% increase from the previous year.
Overall, Apple’s performance in the fiscal third quarter was mixed. The company met analysts’ expectations for revenue and adjusted EPS, but it missed expectations for iPhone revenue and iPad revenue. Apple is however experiencing a growth in its services business.
| (USD) | June 2023 | Mar 2023 | Dec 2022 | Sep 2022 |
| Revenue | 81.8B | 94.84B | 117.15B | 90.15B |
| Net income | 19.88B | 24.16B | 30B | 20.72B |
| Diluted EPS | 1.26 | 1.52 | 1.88 | 1.29 |
| Net profit margin | 24.3% | 25.48% | 25.61% | 22.99% |
| Operating income | 23.0B | 28.32B | 36.02B | 24.89B |
| Net change in cash | 4.92B | 5.15B | -3B | -3.88B |
| Cost of revenue | 45.3B | 52.86B | 66.82B | 52.05B |
Profitability
Apple is a highly profitable company. In the past year, it had a net income of $99.6 billion, which represents a 25.31% profit margin. Apple also has a strong operating cash flow of $111.9 billion.
Ratios
Apple has a number of strong financial ratios. Its return on assets (ROA) is 27.51%, its return on equity (ROE) is 156.08%, and its return on invested capital (ROIC) is 45.31%. Apple’s ROIC is significantly higher than the industry average of 16.72%.
Margins
Apple has some of the highest profit margins in the industry. Its gross margin is 44.13%, its operating margin is 29.82%, and its net profit margin is 25.31%.
Solvency
Apple is a financially sound company. It has an Altman-Z score of 8.02, which is well above the threshold of 2.6 for financial distress. Apple also has a debt-to-free cash flow ratio of 1.12, which is well below the industry average of 2.82.
Liquidity
Apple is also a very liquid company. It has a current ratio of 0.99 and a quick ratio of 0.94. These ratios indicate that Apple has enough short-term assets to cover its short-term liabilities.
Growth
Apple has a history of strong growth. Its revenue has grown at an average annual rate of 7.61% over the past five years. However, in the past year, its revenue has decreased by 2.80%.
Valuation
Apple is a relatively expensive stock. It has a price-to-earnings (P/E) ratio of 29.88 and a price-to-forward earnings (P/F) ratio of 27.33. However, Apple’s P/E ratio is in line with the industry average, and its P/F ratio is slightly higher than the industry average.
Dividend
Apple pays a quarterly dividend of $0.14 per share. This yields a dividend return of 0.53%, which is lower than the industry average of 2.99%.
Overall Assessment
Apple is a strong company with a long history of profitability and growth. It is a leader in the technology industry and has a number of competitive advantages. However, Apple is a relatively expensive stock, and its dividend yield is lower than the industry average.
Amazon Stock Price Prediction
Apple is currently trading at price to price-to-earnings ratio (P/E) of 30.1 and has earnings per share (EPS) of 5.95. Now the service segment is projected to grow at a compound annual growth rate (CAGR) of 3% through 2030 from 2021 and generate $388 billion and the service segment is expected to grow at a CAGR of 18% to $304 billion. Hence, total revenue by 2030 is expected to be $692 billion of which the service segment will contribute 44% and the hardware segment will contribute 56%.
Similarly, earnings per share are expected to reach $7.96 by 2026 from $5.61 in 2022 and grow at a CAGR of 7.24%. Considering the growth potential of the service segment, it will be modest to assume a CAGR of 10% for the next 10 years.
*Source: Tradingview
The earnings are expected to reach $14.55 by 2031. The five-year mean P/E is 24 and P/E is expected to grow further for the next few years due to the service segment. Assuming a modest P/E of 25, the target share price for 2031 comes out to be $363. Hence, $1000 is just too far away even for a growing and stable company like Apple Inc.
Yes, even at a conservative 15% per annum, Apple could reach $500 by 2031. Changes in Valuations, as well as product innovations, could speed up the time frame to 2029 or even earlier.
Also Read: Apple Stock Forecast 2023
Apple Stock Split
Now, the P/E of 29.18 is slightly higher as compared to its peers. For example, Alphabet Inc shares are trading at a P/E of 28.6. Although both companies had a really bad quarter, if the FED continues to hike the interest rates, the P/E for Apple Inc. can also cool off a bit.
Additionally, the earning forecast for the next financial year is $6.32 per stock. Taking the cooled-off P/E of 20x, the price target for 2023 comes only at $126 or so, which is approximately 29% below the current stock price. The extent to which P/E cools off depends on the FED interest rate hike. But if Apple shares have to march towards the $180 target in 2023, then earnings should outperform the market expectations by quite some distance.
The macroeconomic factors weighed down growth in the service business due to a drop in digital advertising spending and increasing foreign exchange rates. But once the economy is on the right path, there is no structural reason for the service businesses not to give double-digit growth. In fact, it will be the main driver if Apple shares have to march to $180 in 2023.
However, Apple does not have great hardware products in the pipeline. Moreover, the recently launched iPhone 14 did not receive great reviews, and the holiday season was expected to go muted for Apple in terms of iPhone sales. Nevertheless, Mac sales increased 25% in the latest quarter earnings, and interestingly, nearly half of the Mac buyers were new to the product.
In 2023, growth in the hardware segment is likely to remain dull and that is one big reason to be not outrightly bullish for Apple. It is expected to ride the tide of macroeconomic uncertainties, but the possibility of double-digit growth especially in the hardware segment is very bleak.
Meta Stock Forecast 2023
Amazon Stock Forecast 2023
There are 4 major positives for Apple Stock – Long-term technical analysis suggests Apple’s stock appears to be in a bullish trend, Consensus Analyst Targets predict a 10-20% rise over the next 12 months, Apple VR has so far received very positive reviews and finally, Apple is betting big on India. Apple has always been great at execution and therefore there are enough reasons to consider buying Apple.[Do your own Research]
In the long run, Apple stock will continue to rise as the Global economy is likely to recover over the next 24 months and Apple’s VR product will be launched in 2024. However, these are predictions and actual results can vary due to a multitude of unpredictable factors.
Apple is a fundamentally strong company with a loyal customer base. The company’s service business has been growing rapidly and could provide a significant source of revenue and profits in the future. Additionally, Apple’s share repurchase program, which reduces the number of shares in circulation, can increase the earnings per share and potentially lead to a higher stock price.
According to aggregated predictions, Apple’s stock price could reach $356 by 2027.
According to aggregated predictions, The stock price could potentially decrease to $126 in 2023 if the P/E cools off due to FED interest rate hikes and earnings do not outperform market expectations.
NVDA Stock Forecast 2023
Note: collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.
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