Apple Inc (AAPL: NSD) recently announced Q1 2024 earnings that went beyond expectations. Its earnings per share stood at $1.68 and it made a mammoth revenue of $111.4 billion. Despite these positive numbers, AAPL slipped by 0.76% in after-hours trading, leading many investors to wonder why the stock is not moving upwards.
Stock Target Advisor’s Analysis on Apple:
Taking into consideration Stock Target Advisor‘s analysis, Apple Inc. has been rated as a Buy. The projected price change over the next 12 months is around 11.85% and the target price is $209. At the same time, Apple has 21 covering analysts who give it an average rating of Buy. The average analyst target price stands at $205.69.
The sector “Consumer Electronics” also holds an average analyst rating of Buy. All these figures point towards an encouraging scene for Apple’s investors. However, Market sentiment can change rapidly, and the prevailing bullish outlook could be altered by any number of unforeseen factors.
Apple: An Overview of Financial Performance
Apple Inc.’s 1-year capital gain of 23.9% and 1-year dividend return of 0.63% are both ranked in the 100th percentile in the sector. The firm’s 5-year revenue growth is 44.31% and earnings growth is 62.93%, placing it in the 72.73rd percentile within its sector. The company is enjoying a good Return on Assets (RoA) at 20.26%, while the Return on Equity (RoE) is at a robust 171.95%, and the Return on Invested Capital (RoIC) sits at a healthy 56.73%.
However, Apple’s Price to Earnings (P/E) ratio is at 30.03, its Price to Book (P/B) ratio is quite high at 45.87, and its Price to Cash Flow (P/CF) ratio is at 25.79. All these figures indicate that while AAPL shows robust growth and profitability, its shares may be overvalued, which could dampen future stock price performance.
Conclusion:
The robust results from Q1 2024 have definitely shored up confidence in Apple’s present economic health. But the company’s valuation ratios suggest that its stock may be overpriced, which could limit future stock price appreciation.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
