A Pros Take on Apple (AAPL)

[View in browser]( [The Spill Logo] BROUGHT TO YOU BY: [Logo]( Proprietary Data Insights Financial Pros’ Top +5% Dividend Value Stock Searches in the Last Month Rank Ticker Name Searches #1 [NVDA]( Nvidia 373 #2 [AAPL]( Apple 261 #3 [META]( Meta Platforms 125 #4 [AMZN]( Amazon.com 124 #5 [MSFT]( Microsoft 122 #ad [Retirement help at your fingertips]( Brought to you by [Stansberry Research]( [People Buying Gold in Strangest Place]( [Stansberry Research - People Buying Gold in Strangest Place]( Gold mania has truly taken hold... News media have been reporting the metal's all-time highs for months. When you've got people clamoring to buy gold in their supermarket along with their toothpaste and tomatoes, that's GOLD MANIA. Which has a lot of people wondering if they are too late to get in on this... Former Wall Street Banker Dr. David Eifrig says not even close - and believes gold can easily hit $3,000 or even $4,000. He just released a new video where he shares a little-known gold "bank" with surprisingly big upside potential. In fact, the last time they shared this idea across our services, people who acted in time could have seen 995% gains. [Click here to see his free presentation, find out about the gold "bank," and the four steps you can take right away to get in on this GOLD FRENZY before it's too late.]( Should You Hold Apple (AAPL)? Apple (AAPL) needed to prove itself in its latest earnings report. A lack of new products and a slowdown in China hampered sales over the past year when revenues declined for the first time since 2019. Thankfully, earnings beat expectations while Apple hyped its soon-to-be-released iPad Pro, which is thinner than an iPod nano and includes the new M4 chip and an OLED panel. While the company assured investors things are better than they seem, we wanted to see whether this stock made sense at these price levels. Apple’s Business From the minds of Steve Jobs and Wozniak, Apple has grown to become a global leader in technology and innovation. With a focus on premium, user-friendly products and services, the company has built a loyal customer base, a strong brand reputation, and an enviable ecosystem. Apple breaks down its business into products (74% of total revenues) and services (26% of total revenues). In recent years, management has focused on expanding the higher-margin services side of the business. Apple is seen as a technology leader. Yet, its lack of spectacular breakthroughs in recent years has worried investors. So, the introduction of the VisionPro and the new iPad were met with exuberance. Importantly, Apple’s latest iPad boasts new AI features not a moment too soon as OpenAI released its latest ChatGPT bot that can listen and communicate verbally. Financials [FInancials] Source: Stock Analysis Sales stagnated over the last year in several key categories, including: - iPads sales down 17% YoY - Wearable sales down 9.6% YoY - iPhone sales down 10.5% YoY - China sales down 8.1% YoY Thankfully, services revenue climbed 14% YoY, helping to cover the shortfalls elsewhere. This helped improve gross margins to 45.6% for the trailing 12-month period, while boosting all other margins as well. With over $162 billion in cash and securities, Apple announced a massive $110 billion buyback on top of increasing its quarterly dividend by 4%. Valuation [Valuation] Source: Seeking Alpha The latest jump in Apple’s stock has stretched its valuation quite a bit. Shares trade at 28x earnings, which is cheaper than most other large-cap tech, but not all. In fact, its price-to-cash flow is tied for the second highest on this list with Microsoft (MSFT). That would be fine if Apple has the same growth prospects. Growth [Growth] Source: Seeking Alpha Unfortunately, Apple’s sales forecast isn’t so hot. At forward growth of just 1.4%, it’s the lowest of all the stocks on this list. In fact, it has the lowest growth rate in nearly every category compared to its peers. Profitability [Profit] Source: Seeking Alpha Although Apple runs good margins, it’s still one of the lowest on this list. Only Amazon (AMZN) comes in lower in several categories. However, Apple’s returns on equity, assets, and total capital are nothing to sneeze at. [Master the Art of Investing with The Juice!]( Become a pro investor in just 5 minutes a day! Decode the intricacies of business, economy, and more with The Juice. Subscribe for FREE, stay ahead of the curve, and make better money decisions. [Subscribe now!]( Our Opinion 6/10 Apple is a great company. But we fear it’s hit a stagnation point. The company relies more on iPhone replacement cycles and incremental growth rather than true innovation. That could change as it expands its work into AI. However, we see far more value in other companies like Microsoft or Meta (META). 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