There’s no time to waste if you want to get in on this potential triple-bagger investment; so let’s cut through the fat and get right to the meat of the matter.
Earnings season is in full swing on Wall Street and this week will be one of the most exciting and influential. Both tech giants Facebook (NASDAQ: FB) and Apple, Inc (NASDAQ: AAPL) will present earnings (on Wednesday and Tuesday, respectively) and analysts are already professing a major rally in the works. This analyst isn’t ready to hop on board that band wagon just yet, but is convinced that Apple stock, before, after, and during the company’s earnings report is a phenomenal investment.
Lets start with the track record. Over the last 10 years, Apple’s management has increased market capitalization by 15 times, grown revenues by a multiple of 17, and increased brand value 21 times over! And that’s not even the most impressive part – net income has grown by over 41 times during the course of the past decade; from a not so paltry $1.3 billion in 2005 to well over $53 billion last year! That’s impressive growth, rarely seen in the history of the marketplace. But it’s just business as usual at Apple.
Apple’s sales are still at the top of the tech pile, despite analyst warnings against dismal iPhone sales and the death of the Mac. In fact, last year, Apple captured a whopping 92% of global smartphone profits. The closest competitor was Samsung in second place with a paltry 14%. And prior to last Christmas (during the period 12/19 – 12/25), Apple’s devices accounted for almost half of all new device activations. With the anticipated release of a new, more inexpensive iPhone in 2016 for major markets such as India and China, and increasing popularity of the iPhone 6+ phablet, those numbers show no signs of slowing.
Also, over the past two years, Apple more than doubled its R&D budget; allowing it to gobble up smaller companies and come out with Apple Pay (a division so large and profitable that it could be a stand-alone entity) and Apple TV (a service that could easily make Apple the largest cable bundle provider in the world). Recently, Apple even completed the purchase of a VR company and secured one of the top virtual reality researchers as a potential leader of a new segment addressing an $80 billion VR market.
Then there’s the cash. Apple earned more in interest on it’s uninvested cash in 2015 than Facebook earned in net profits. That’s a lot of money. And that tells investors the dividend is not going away, and the company is ready to throw some major weight behind the next innovation it’s engineers and designers push out.
So, while Apple is still a far cry from it’s record-setting $1 trillion market cap, as management continues to make the right decisions and engineers continue to come out with new, disruptive products, investors will see the company return to it’s lofty valuations of years past and set new records in terms of revenues, earnings and market cap. There’s a reason this is still the most valuable company on earth, and it’s not going to take much time for the rest of the investing world to take note.
Don’t get left behind when this stock takes off in the very near future. Apple should be a part of every investor’s portfolio; especially at prices this low.