Apple Stock: Is It a Good Buy Right Now?
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stock market lore is satiate with stories of how rich you could be if you had bought Apple sprout ( Nasdaq : AAPL ) early on on. This would be helpful information if investors were clock time travelers, but they ’ ra not. So the only question that matters is this : Is Apple stock a good buy right now ?
To find the answer to that interrogate, consider the company ’ s introduce site and where it ’ s likely to go, not where it ’ randomness been.
Apple’s Recent Performance
On Jan. 27, Apple released its quarterly earnings for the first quarter of 2022. To say that earnings were good would be an understatement. They beat analysts ’ expectations in every class except for iPad sales .
here are some key takeaways, as reported by CNBC :
- Earnings per share (the amount the company earned in the quarter divided by the number of shares outstanding) were $2.10, compared to the expectation of $1.89.
- Revenue was expected to be $118.66 billion, but it was actually $123.9 billion, an increase of 11% over the same quarter last year.
- Revenue for the iPhone product line grew 9% over the same period last year, to $71.63 billion. It was expected to be $68.34 billion.
overall, Apple performed quite well .
Apple stock pays dividends — most recently, $ 0.22 per share, paid on Nov. 5, 2021 — to shareholders of record. Before you rush out to buy Apple sprout in anticipation of the Feb. 10 dividend requital, understand that this dividend has already been priced into the stock ’ south price. But declaring a dividend is a sign of strength .
Where It Might Be Going
While it ’ sulfur difficult to determine the future of Apple, some things are known .
As of Jan. 27, Apple had over $ 195 billion in cash. When a company has a lot of cash, it normally does one of three things with it. It may pay a dividend, which Apple is already doing. But it will placid have quite a cash reserve, so it may buy other companies, or it could buy back shares of its own malcolm stock. BBC News reported in February 2021 that Apple had bought about 100 companies over the former six years — about one every three to four weeks, recently focusing on the augmented and virtual world, artificial news, maps, health and semiconductor device industries, according to CNBC. Apple besides likes to buy back lineage — to the tune of about $ 450 billion in recent years, CNBC reported .
Good To Know
Stock buybacks are beneficial to existing stockholders since they reduce the act of shares outstanding. When you divide the company ’ sulfur prize by a smaller number of shares outstanding, the value of each share rises .
Apple products are identical popular, and its customers are very loyal, so the ship’s company ’ s mentality is reasonably blushful. But there are always risks, and the current deficit of chips used in iPhones and iPads could be cause for concern. Apple CEO Tim Cook told CNBC that the company ’ mho performance had been affected by issue constraints due to bit shortages and pandemic-related manufacture disruptions, which led to the ship’s company ’ south inability to meet the demand for iPads — the reason sales of that merchandise fell short-circuit of expectations .
many companies will state their anticipation for their performance for the approaching quarter when they announce their results for the previous quarter. Apple has not done this recently, due to the uncertainty around the pandemic, but it did say in its Oct. 28, 2021 earnings liberation that it expected to reach its highest tax income ever in the December quarter, despite ongoing chip and fabricate challenges — and it did .
What the Analysts Say
You can besides get an idea of a livestock ’ s probably performance by looking at what the analysts have to say. These professionals make their living by following the operation of respective companies in an industry and making recommendations as to whether investors should buy, hold or sell the stock .
According to Yahoo Finance, of 38 analysts who follow Apple stock, 11 rated the neckcloth a “ strong buy, ” 21 rated it a “ bargain ” and six rated it a “ hold. ” none of the analysts considered Apple to be an underperformer or recommended that investors sell it.
At the market stopping point on Jan. 28, Apple lineage was trading at $ 170.33. The analysts who follow the stock provide a target price, which they think the neckcloth will reach in the short term. For Apple, those estimates range from $ 128.012 to $ 210 and average $ 180.94, all of which are slightly higher than the estimates for final quarter .
Is Apple Stock a Good Buy Now?
Apple has historically been a good performer, and the analysts seem to agree that the stock is worth buying. But any individual stock can be volatile, and you should look at each purchase in the context of your entire portfolio .
Apple is a large-capitalization stock in the technology sector. If your other investments already include “ FAANG ” stocks like Facebook, Amazon and Google, you may want to think twice about adding Apple to the mix. On the other pass, if you have a good mix of stocks in divers industries, Apple may be a good pick for you .
In the event you like Apple stock but feel that investing in individual stocks is riskier than you ’ re comfortable with, consider purchasing a reciprocal fund or exchange-traded fund that has Apple in its portfolio. Funds contain bundles of securities from different companies and/or industries. The divers holdings can make them a safe investment than individual stocks .
Keep In Mind
Apple is a historically hearty investment and has made many early investors very affluent. Those who are considering buying the standard at this point, however, need to understand that it can not replicate the gains it made in the early years. By the same token, buying Apple now is far less hazardous than it was in the early on 1980s .
How To Buy Apple Stock
here ’ s a expect at the steps to take to buy Apple stock .
1. Select a Broker and Open an Account
To buy Apple stock, you need to go through a broke. You can open an score through an on-line broke like E-Trade, Charles Schwab or TD Ameritrade if you want to execute your own trades. on-line brokers have moo or no fees, but you won ’ t get much advice about which stocks to choose .
You could besides go to a full-service broker, like Edward Jones or Morgan Stanley. These firms offer advice and fiscal plan services, but they besides have higher fees. And they may require a minimum libra to open an report, depending on the option you choose .
once you ’ ve decided what type of agent you want to use, you ’ ll need to open an history and put some money in it. then it ’ sulfur time to start buy .
2. Consider Commissions and Ticket Charges and Make Your Purchase
To purchase shares of stock, you ’ ll need to know the heart symbol. For Apple, this is AAPL. You ’ ll besides need to know which exchange the stock is traded on. Apple, like many technical school stocks, is traded on the Nasdaq switch over .
Decide how many shares you want to buy and make your buy. You may be charged fees, such as a perpetration and/or ticket fee, for each craft. Be indisputable you know what fees you ’ re being charged and how much they cost and figure that amount into the price you ’ re paying for the shares. Fees should inform your choice of broke, particularly if you ’ re planning to buy and sell regularly rather than hold your investments for a long meter .
3. Maintain a Balanced Portfolio
now comes the hard partially — waiting. Most stocks, Apple included, will fluctuate in rate over time. That ’ s the nature of investing. Although there ’ s no guarantee on what a particular stock or the overall grocery store will do over meter, historically, the market has constantly gone up over the long campaign. therefore lest you be tempted to sell at the beginning sign of a decline, that ’ s rarely the best motion, particularly for a blue-chip stock like Apple. Holding stocks for the long term and maintaining a balanced portfolio have always been winning strategies.
Daria Uhlig contributed to the report for this article .
Data is accurate as of Jan. 28, 2022, and subject to change.
About the Author
Karen Doyle is a personal finance writer with over 20 years ’ know writing about investments, money management and fiscal plan. Her knead has appeared on numerous news and finance websites including GOBankingRates, Yahoo ! Finance, MSN, USA Today, CNBC, Equifax.com, and more .