In the past year, Apple (NASDAQ: AAPL) stock has been quite stable, rising more than 84%, and is currently the market maker cap leader of all U.S. publicly traded stocks at over $1.58 trillion.
So far this year, the stock is now up 25%, just though the broader market is treading water.
Such remarkable gains leave investors asking if the train has left the station already, or if Apple still has space to go.
Shaking Off the Effects of COVID-19
Initially, Apple stock plummeted more than 30% on fears that the worldwide closing of its retail stores and widespread stay-at-home orders will cause customers to hunker down, hold on to their phones for longer and demean Apple’s performance. Although those worries were well-founded, Apple’s dark cloud had a silver lining.
The company’s increasing focus over the past several years on services and wearables. It was coupled with its strong online sales channel, which has given Apple a lifeline. Although many other retailers have been struggling with weak demand.
Recent Results Tell the Tale
Apple announced the results of the fiscal second quarter in late April. Investors started to resolve some of the confusion that arose from the pandemic.
Apple reported quarterly revenue of $58.3 billion, up 1% from the quarter of August. Meanwhile, earnings increased by 4% by $2.55 per share.
Yet these tepid results were underlying indicators of what the future might hold. The company delivered Apple retail record quarterly results, driven by strong growth from their online store.
It also coaxed a quarterly record of its segment of wearables, home, and accessories, thus creating an all-time high from its segment of services.
A Nod to Valuation
Apple stock isn’t the shouting bargain it was just a few months ago. The stock currently sells earnings around 29 times, while the S&P 500 average sits at about 23 times.
Apple also trades on forwarding revenues six times. Since bottoming out late March, these metrics have been pushed higher by the stock’s impressive recovery.
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