Apple’s Impressive Start to 2024: Can the Tech Giant Continue to Thrive?
The world’s largest company by market capitalization, Apple (NASDAQ: AAPL), has been on a roll so far in 2024, with its stock surging approximately 26% to date. This impressive performance has left investors wondering if the tech giant has more room to grow in the new year.
A Closer Look at Apple’s Latest Quarterly Results
While Apple’s revenue growth may have been modest in recent quarters, its latest quarterly results suggest that 2025 and 2026 could be game-changers for the company. The launch of the latest iPhone 16 models has played a significant role in driving revenue growth, with shipments increasing by 3.5% year over year to 56 million units in the third quarter of calendar 2024.
The Rise of Generative AI Smartphones
The growing adoption of generative AI smartphones is expected to be a major catalyst for Apple’s growth in the coming years. With shipments of these devices forecast to jump by 73% in 2025, Apple is well-positioned to capitalize on this lucrative market, thanks to its AI-capable smartphone lineup.
Analysts’ Expectations
Analysts expect Apple’s top line to increase by 6% in fiscal 2025 to $414.5 billion, with earnings projected to rise by almost 10% to $7.39 per share. In fiscal 2026, Apple’s earnings are expected to jump to $8.31 per share, driven by the continued growth of its generative AI smartphone business.
A Compelling Investment Opportunity
With Apple’s stock currently trading at 39 times trailing earnings and 32 times forward earnings, investors can buy this tech stock at a relatively attractive valuation. If Apple’s earnings continue to grow as expected, its stock price could hit $415 in a couple of years, representing a 73% jump from current levels.
Before You Invest
While Apple’s prospects look promising, it’s essential to consider other investment opportunities as well. The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks for investors to buy now, and Apple wasn’t one of them. These 10 stocks have the potential to produce monster returns in the coming years.
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