Apple, Inc. (NASDAQ: NASDAQ:AAPL) is among the top choices for any portfolio, given its disruptive potential, active installed base that is ever swelling and high-margin Services business that promises to grow at an astounding pace.
Cupertino is by far the largest global corporation by market value. Even with the stock's advance, the valuation hasn't yet become prohibitive. Of the 29 analysts rating the stock, 23 have Buy ratings, while the remaining have Hold ratings, according to TipRanks. The average analyst price target is $193.11, suggesting there is potential for an incremental 16% upside.
iPhone Still The Cash Cow: Apple derived roughly 57% of its revenues from its flagship product – the iPhone – in the December quarter. First introduced in 2007, the product is still ruling the roost even after a decade-and-a-half of existence. The year-over-year revenue growth from the product, however, was slower than from its Mac lineups and the Services segment.
Apple announced the current iteration of the iPhone – the iPhone 13 – on Sept. 14, 2021. Although the verdict on the Street was that it only had nominal feature improvements over the iPhone 12, it did have a salubrious effect on the stock.
iPhone 13 variants accounted for a bulk of the iPhones sold in the March quarter, according to new research from the Consumer Intelligence Research Partners.
Related Link: Apple Spends Record Amount On Lobbying In Q1 Amid Congress' Big Tech Clampdown
Returns Since iPhone 13 Launch: Apple was not immune to the tech rout seen in the market since the start of 2022. The specter of higher interest rates amid the Fed's signal to remove monetary policy accommodation was the initial trigger that set off the sell-off in the space. The Russia-Ukraine war served to aggravate the weakness, with the geopolitical tension manifesting as component shortages and input cost inflation.
Although Apple stock is down 6% year-to-date, it has notched up fairly decent gains since the launch of the iPhone 13.
A $1,000 investment in Apple on Sep. 13, 2021, a day ahead of the launch date, would have fetched 6.7 shares of Apple. The same 6.7 shares would be worth $1,084 at the current price, suggesting a return of 8.4% over a seven-month time frame.
The returns, though not robust, are commendable compared to the roughly 11% drop for the Invesco QQQ Trust (NASDAQ: QQQ) and 1% pullback by the SPDR S&P 500 ETF Trust (NYSE: SPY (NYSE:SPY)).
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