Apple Stock to Gain From 'Flight to Safety' Even If Earnings Underwhelm (2024)

FAQs

Does Apple stock usually go up after earnings? ›

That Could Change This Time. Apple reports earnings after the markets close Thursday, and after a quarter of problems for the tech company, investors may be concerned that the stock won't perform as well as it has in the past.

If Apple stock continues to produce median annual returns of 24% going forward, as it has since the early 1980s, getting to $500 would take about five years. Of course, if nominal share price matters, stock splits should be taken into account. Apple has announced splits five times in the past four decades.

It was projected that Apple's share price would reach $220 by the end of 2023, $250 in 2024, $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029. In 2030, analysts anticipate Apple shares will be worth $510. We will now talk about the future of the stock price.

Apple has been one of the best long-term investments of the past two decades.

In general, strong earnings generally result in the stock price moving up (and vice versa). But some companies that are not making that much money still have a rocketing stock price. This rising price reflects investor expectations that the company will be profitable in the future.

More generally, the investment bank noticed that stocks tend to rise after reporting earnings, which means that a basic options strategy of buying calls on all stocks set to report works well.

Indeed, Apple shares will never get back to $700, says The Economist. The stock has recovered after being "mauled by bears" before, but this time is different.

Stock Price Forecast

The 38 analysts offering 12-month price forecasts for Apple Inc have a median target of 188.50, with a high estimate of 220.00 and a low estimate of 140.00. The median estimate represents a +3.94% increase from the last price of 181.36.

The company's history of consistent stock growth and immense brand loyalty will likely keep it growing for decades. And with that, it's definitely not too late to invest in the stock for the long term.

Over the past two decades, Apple stock generated a total return (price change plus dividends) of more than 69,000%, or more than 38% annualized. Have a look at the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would be worth more than $695,000 today.

What if you invested $1,000 in Apple 5 years ago? ›

Its high point during that time was $182.94. That's growth of 459.76%. If you sold your $1,000 investment from 2017 at that price, you'd have a total of $4,597.58.

Shares of AAPL have been on a tear in 2023, appreciating over 30% YTD, and while they could continue to fluctuate, I believe the trend will continue higher throughout 2023. AAPL is off its 52-week high of $176.15 by roughly 7.93%, and I believe shares can exceed $180 by 2024.

Still, an investment in Apple is not without risk. Perhaps the biggest threat to the company's highly lucrative business model is its reliance on China for its manufacturing.

For long-term, buy-and-hold investors, Apple could be a good addition to your portfolio. However, whether Apple is a solid investment choice depends upon your portfolio's mix. Although Apple has previously performed well, its past results do not mean it will deliver similar results in the future.

Based on analyst ratings, Apple's 12-month average price target is $188.82. Apple has 4.34% upside potential, based on the analysts' average price target. Yes, go to the Analysts' Top Stocks tool to see stocks with a Strong Buy or Strong Sell analyst rating consensus, according to the top performers.

If you believe a company will post strong earnings and expect the stock to rise after the announcement, you could purchase the stock beforehand. Conversely, if you believe a company will post disappointing earnings and expect the stock to decline after the announcement, you could short the stock.

Selling early can also help you avoid periods of flat performance. This is also important ahead of earnings as things may quiet down in the days leading up to a report. Investors may take a wait-and-see attitude, which means you have your capital at risk for less potential reward.

The average stock-price reaction on the trading day after earnings reports for S&P 500 companies is down 0.2%, according to Evercore, and a slight majority of the index's market value has reported. Six of the index's 11 sectors are seeing their stock prices, on average, fall after earnings.

We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.

The opening 9:30 a.m. to 10:30 a.m. Eastern Time (ET) period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

When should you take profit on a stock? ›

How long should you hold? Here's a specific rule to help boost your prospects for long-term stock investing success: Once your stock has broken out, take most of your profits when they reach 20% to 25%. If market conditions are choppy and decent gains are hard to come by, then you could exit the entire position.

The company's expected annualized growth rate over the next five years is 9.48 percent. Using today's price of $150, Apple shares would reach about $236 in five years if the stock price advances at the same rate. Note that this assumes no share dilution or stock splits.

On Feb. 24, 2023, Apple (NASDAQ: AAPL) stock opened at a price of about $147 per share. While it may seem impossible that Apple stock will ever be valued at $1,000, this is not completely out of the realm of possibility.

Overall, while there is a wide range of price targets for AAPL stock, it's safe to say analysts are modestly bullish but don't expect $200 in 2023.

The data forecast predicted that Apple share price is set to increase to $220 by the end of 2023, $250 in 2024, $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028 and $480 in 2029.

As of 2023-06-11, the Fair Value of Apple Inc (AAPL) is 108.14 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 180.99 USD, the upside of Apple Inc is -40.2%.

According to the latest long-term forecast, Apple price will hit $200 by the end of 2023 and then $250 by the middle of 2024. Apple will rise to $300 within the year of 2025, $350 in 2026, $450 in 2027, $500 in 2028, $600 in 2031 and $700 in 2034.

Experts predict an uptrend for Apple stock. In 2025, the value of the asset will exceed $601.56. In 2026, the trend will continue, experts predict the price of Apple stock at $911.45.

Apple Stock Forecast & Predictions: 1Y Price Target $183.08 | Buy or Sell NASDAQ: AAPL 2023 | WallStreetZen.

Since Apple stock trades at $126.36 today, that translates to a return of 126,360%. In other words, that $1,000 investment in 1980 would be worth more than $1.26 million today!

What is Apple stock 10 year average return? ›

23, 1984). A $1,000 investment could have purchased 7,692.31 shares of AAPL at the time. The $1,000 investment in AAPL shares would be worth $1,162,615.73 today, based on a price of $151.01 for Apple stock at the time of writing.

Apple went public in December 1980 with its IPO priced at a pre-split price of $22 per share. A $10,000 invested in Apple back then would now be worth more than $1.6 million.

Apple Inc. is a publicly traded company, so no individual or entity owns the company in its entirety. However, the majority stakeholder of the company as of 2023 is The Vanguard Group, which holds 7.6% of all outstanding shares.

$1000 Invested In This Stock 10 Years Ago Would Be Worth $5,700 Today. Be Smarter Than Your Friends: Benzinga members get 3 trade opportunities & the hot takes on the economy every single week.

Is Apple stock a buy, sell, or hold? Apple's stock is trading at about 29 times its earnings, making it slightly expensive. However, its share price has soared by 266% over the last five years and 966% over the last decade. That history of consistent growth makes the stock a compelling buy at almost any time.

Warren Buffett sang Apple 's (AAPL) praises Saturday at Berkshire Hathaway 's annual shareholder meeting, saying the iPhone maker is a better company than any firm in the conglomerate's vast portfolio.

Apple has a fortress-like balance sheet, with $64 billion of net cash. It also generates around $100 billion in free cash flow every year, so it has plenty of resources to fund growth initiatives and pay dividends to shareholders.

What are Apple stock weaknesses? ›

Apple weaknesses are the attributes, tasks, and strategies the company is yet to master or make it seem less appealing. Apple's weaknesses are its premium prices, the fact that different operating systems are not compatible with Mac, and the fact that its revenues are highly dependent on the iPhone and iPad.

“Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter,” said Luca Maestri, Apple's CFO.

Lackluster sales of the entry-level iPhone 14 models is the main reason Apple's stock has fallen. In response to the poor sales, Apple cut production of the lower-end models by six million units for the second half of 2022.

As a result, $10,000 in AAPL stock purchased 20 years ago would be worth about $7.51 million today, assuming reinvested dividends.

It was projected that Apple's share price would reach $220 by the end of 2023, $250 in 2024, $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029. In 2030, analysts anticipate Apple shares will be worth $510.

Apple (NASDAQ:AAPL) hiked its dividend by 4.3% to $0.24 per share, or $0.96 annualized, for an annual yield of 0.6%. The dividend will be payable on May 18, 2023, to stockholders of record on May 15, 2023, with an ex-dividend date of May 12, 2023.

In the long run, the iPhone launch event doesn't affect the stock price as much as their quarterly revenue, cash flow and profit numbers.

As mentioned before, most stock traders and investors naturally expect the price of a stock to go up if the company happens to report earnings that are higher than the estimates set by analysts. Unfortunately, this is not always the case, and a stock may drop even if the company posts better-than-expected earnings.

Bloomberg consensus at this point anticipates about a 5 percent annual decline last year for the second quarter. Apple reported revenue of about ninety seven billion for this year, 2023. The second quarter will come in at around ninety two billion. That's according to a summary of analysts estimates.

Apple shares fell about 3% in postmarket trading after the tech behemoth announced its first quarterly revenue decline in nearly four years. During the key holiday quarter, Apple experienced disruptions to its iPhone production due to upheaval at a smartphone factory in China amid zero-Covid policies.

What is the prediction for Apple shares? ›

Stock Price Forecast

The 38 analysts offering 12-month price forecasts for Apple Inc have a median target of 188.50, with a high estimate of 220.00 and a low estimate of 140.00. The median estimate represents a +4.11% increase from the last price of 181.06.

Overall, while there is a wide range of price targets for AAPL stock, it's safe to say analysts are modestly bullish but don't expect $200 in 2023.

The release of an innovative, revenue-driving product or service is one of the few ways a company can influence its stock's valuation. Apple's financial performance, including the ascendance of its share price, relies heavily on the sales of its products.

If you believe a company will post strong earnings and expect the stock to rise after the announcement, you could purchase the stock beforehand. Conversely, if you believe a company will post disappointing earnings and expect the stock to decline after the announcement, you could short the stock.

Fewer days in the position means fewer chances for things to go against you. Selling early can also help you avoid periods of flat performance. This is also important ahead of earnings as things may quiet down in the days leading up to a report.

Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock, an increase of 4 percent. The dividend is payable on May 18, 2023 to shareholders of record as of the close of business on May 15, 2023.

The all-time high Apple stock closing price was 180.96 on June 09, 2023. The Apple 52-week high stock price is 184.95, which is 2.2% above the current share price. The Apple 52-week low stock price is 124.17, which is 31.4% below the current share price. The average Apple stock price for the last 52 weeks is 152.71.

September 29, 2000: Apple Drops 51.89%

The stock's steep decline was due to a number of factors, which in hindsight combined to form a perfect storm of headwinds that proved too fierce for shareholders to deal with at the time.