Apple Inc. is a multinational technology company focused on consumer electronics, , and online services. Analysts expect Apple stock’s revenue growth to average 7% a year over the next several years. Apple stocks are currently selling for a low price, so a Buy-on-weakness strategy may be your best bet.

Despite the significant decline in the stock market, The stock set its lowest 2020 of $256.37 on Feb. 28, holding its semiannual and quarterly value levels at $262.02 and $260.88, respectively. Given additional stock market weakness, the downside risk is to the annual value level at $253.68 and the 200-day simple moving average at $244.92.

Apple Stock Buy-On-Weakness

But, Apple stock has beaten earnings per share (EPS) estimates in 15 consecutive quarters, but the stock is not cheap. Its P/E ratio is 22.83 with a puny dividend yield of 1.07%, according to Macrotrends.

This article will help you choose the right stock to purchase based on the following criteria:

Analysts predict revenue growth of 7% a year

Although the company expects the holiday quarter to be a drag on its revenue, analysts expect strong growth in the just-ended quarter. Analysts also expect that Apple stocks will outpace competitors as purchases many custom parts and locks in suppliers’ capacities.

Smaller rivals are struggling to keep up and are losing market share in China. The company has long resisted the pressure of competition, but the recent supply chain challenges have prompted it to adjust its production strategy.

One key reason for the strong performance is the increasing dependence of Apple on its Services . The company’s services business grew five times faster than its hardware business during the first three-quarters of FY’20, indicating that Apple is increasingly dependent on services to drive growth.

Epic’s lawsuit, however, is focused on Apple’s commissions. This is one of Apple’s most profitable revenue streams. While analysts had previously warned about the possibility of a chip shortage affecting holiday sales, their forecast is still impressive.

Analysts anticipate revenue growth of 7% a year from now to CY 2022. This growth rate is lower than what analysts had previously predicted. During the holiday quarter, the company is expected to ship a record number of iPhones.

Additionally, analysts anticipate a quarterly profit of $1.89 a share, which is more than double what they predicted two years ago. While analysts expect Apple to continue to grow revenue and maintain solid profit margins, the company’s massive stock buyback program could significantly magnify shareholder returns.

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It is worth noting that Apple has bought back 5% of its shares in the past five years. This buyback will undoubtedly increase the company’s value. This investment has become the first company to reach the $3 trillion mark. The stock is currently trading at 33x projected EPS.

Bank of America analysts remain bullish on Apple stock. The company’s mix of iPhone and iPad sales remain positive, despite headwinds in services. Gross margins remain strong and the company’s potential for M&A may help accelerate innovation. Analysts predict revenue growth of 7% per year for Apple in 2019.

Low valuations

It is difficult to argue that Apple’s valuation is cheap based on its forward P/E multiple, which is 24.7. However, the company is still overvalued by historical standards. Since 2014, Apple has traded at an average PE ratio of 16.7.

This ratio has been trending down over the years. However, the current number is still higher than the average. The company’s recent share repurchases and dividend policy have helped reduce the stock’s valuation.

While it is difficult to calculate a stock’s value quantitatively, the recent war in Ukraine has sent the dollar and oil prices soaring. The potential for several Fed rate hikes has also contributed to valuation compression. Even Apple isn’t immune to these macro factors. The following are some factors that investors should consider when evaluating the company’s stock valuation:

Despite a strong product lineup, the price of Apple shares may be declining due to changing market dynamics. Although the company has a strong product line-up, recent developments such as chip design rollouts and a new Mac may be causing some investors to consider a sale.

Regardless, Apple’s stock valuation has changed in recent months, so we should be wary of any short-term trend in the company’s stock price. Despite low valuations, investors should still consider the company’s future growth prospects.

Analysts expect earnings growth to rise 9.6% in the fiscal year 2022 and 6.8% in the fiscal year 2023, but this does not justify the historically high valuation. It is also important to consider Apple’s industry and its prospects.

A strong product line will boost its share price. In addition to delivering a stellar product, Apple should also be able to expand its product line and expand its market share. Besides the iPhone, Apple also offers a range of services. Its revenue rose by 33% in the last fiscal year and over $24 billion was returned to shareholders.

Despite this, the iPhone business has reached maturity and investors are wondering where it will next grow. While services and wearables have given the company a boost in recent years, the future growth of the company lies in services and products. And while these areas might be slowing down, Apple is still a Wall Street favourite.

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Apple Stock Buy-on-weakness strategy

A buy-on-weakness strategy for Apple stock is a smart way to invest in the tech giant. Although Apple has a market cap of over $3 trillion, its shares have been volatile and have fluctuated over time. A recent article by Morgan Stanley said that the company’s stock price is not reflective of its upcoming products.

Its analysts had set a price target of $200 for Apple. However, the buy-on-weakness strategy doesn’t always work. Apple stocks tend to trend for days or weeks, so a 5% pullback in AAPL stock may continue for a while.

Also, it’s important to remember that AAPL is only 6% off of its all-time high. Historically, dip-buying strategies have led to the most profit in one year. Apple’s reliance on the iPhone continues to be its main source of revenue, accounting for 56% of the company’s third-quarter revenue.

The company is taking steps to diversify away from its iPhone by growing its services business and expanding its ‘other products’ segment. But these efforts aren’t enough to offset the loss of the iPhone as a primary contributor to its sales. Ultimately, the stock will have to turn around.

While this strategy may not be suitable for all situations, it is a solid option if you are looking for a quick profit. It requires some preparation before the market opens. Ideally, you should choose a day when there is no major news that could impact the stock’s price.

Also, you should make sure that the leading market indicator (CMI) hasn’t moved by more than 0.5% over the past 30 minutes. Once you’ve entered and exited, you’ll have your target price, hold time, and stop type.

The Buy-on-weakness strategy for Apple stock requires an analysis of Apple’s business model. Since Apple has been a strong performer in the past, analysts are generally agreeing on its buying potential.

However, it’s important to consider the stock’s volatility in the context of your overall portfolio. While there’s no denying Apple is a high-quality stock, it might not be worth the risk for an investor whose portfolio already includes “FAANG” stocks.

Identifying the stock you want to buy

There are two ways to buy Apple stock: market orders and limit orders. A market order allows you to buy at the current price, and a limit order lets you specify a specific price you are willing to pay. Trading platforms will execute the orders according to the specifications.

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If you are interested in purchasing Apple shares, make sure to monitor your investments. Make sure to attend the annual meeting at Apple to learn more about how you can maximize your investment potential. Another way to purchase Apple stock is to use a fractional share.

These smaller shares are perfect for beginners, and most online brokers offer fractional shares for as little as $25. Apple’s stock has consistently grown, and you can set up a regular dividend if you decide to buy a small amount of the company’s stock.

Using an online broker can also make it easy to own fractional shares of Apple stock. Another way to invest in Apple stock is to use a dollar-cost-averaging strategy. This strategy allows you to buy a certain amount each month for an extended period.

In other words, if you invest a small amount in Apple stock each month, you will get a much higher return than you would by purchasing an entire share at once. If you invest more than $50 a month, you can also use a dollar-cost averaging strategy.

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Apple Inc. is a multinational technology company focused on consumer electronics, software, and online services. Analysts expect Apple stock's revenue growth to average 7% a year over the next several years. Apple stocks are currently selling for a low price, so a Buy-on-weakness strategy may be your best bet....
LawrenceLawrence Abiodunakinpedia@.comAdministratorA blogger who blogs about Business, Information Technology, Digital Marketing, Real Estate, Digital Currencies, and Educational topics that can be of value to people who visit my websiteAkinpediaBest Strategies for Apple Stock Buy-On-Weakness 1