Apple Inc. (AAPL)
Market Cap: 836 Billion
Dividend: $2.52 (1.49%)
Apple stock has grown tremendously over the past ten years, however do not confuse Apple as a value stock as their is still plenty of room for growth in the near future, as well as distant future. It currently sits at a trailing P/E ratio of around 17, and a forward P/E of only 12.52. Meanwhile the Shiller P/E currently sits at 31.68. This makes proves Apple is still a great buying opportunity with great long term value. Along with this, Apple has a massive pile of cash on the balance sheet that the company could put towards several things.
- Acquisitions of other companies
There has been rumors of some time now that Apple is looking to make a big move and buy out a large company to bring on a new stream of revenue. Here are some possible acquisitions:
- Spotify (SPOT)
- Disney (DIS)
- Netflix (NFLX)
- Tesla (TSLA)
- Cirrus Logic (CRUS)
- Rewarding shareholders
Apple has plenty of room to hike their dividend to reward shareholders. They also could start buying back stock back to benefit shareholders.
Apple buys lots of different parts for the devices they create from different companies such as audio chips from Cirrus Logic (CRUS). One option could be to just straight up buy out companies they use like Cirrus Logic, or they could begin manufacture their own audio chips and other parts of their popular devices. This would increase the profit margin on products such as the Iphone or Macbook. This is seems to be an option Apple is currently exploring, on March 19th 2018 there was a leaked report of Apple using a secret US facility to develop micro LED screens for the Apple Watch.
Apple has the largest market cap in the whole world which currently sits at $836 billion at the time of this writing. They are also on pace to be the first company to hit the one trillion dollar mark. They are way ahead in the largest market cap race, with Alphabet (Google) in second at only $711 billion. Along with all these statics Apple has proven to be one of the best run companies in the world giving it the valuation it deserves. All in all, Apple still looks like a great buy for April 2018.