Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOGL) together account for a huge portion of the stock market. And Apple’s triple-digit return in the last year shows no sign of ending. The iPhone 11 series is a much-needed catchup product that could reverse unit sales decline. Add services growth and chances are high that Apple stock will just keep soaring higher.
iPhone Still Hot
Markets expect strong iPhone sales when Apple reports quarterly results. Loyal Apple users who waited more than three years before upgrading from an iPhone 5 or 6 will have bought an iPhone 11. Apple is not cornering itself out of the mainstream market, either.
Rumors of a refreshed iPhone 8 will undermine Android’s strong unit sales. If Apple updates this model with Face ID unlock and adds a rear camera (for dual-lens), mainstream Android phone sales will fall. Apple needs more users in its ecosystem and cannot rely on premium iPhone sales. The growing user base will drive Apple Music, Apple TV, and app sales higher.
At $360, Apple shares will have doubled from last June 2019’s low. And yet the stock’s forward P/E of over 20 times will prove modest. Facebook and Google enjoy forward P/E in the mid 25 times range.
Apple reports quarterly results on Jan. 28. A blowout quarter will send the stock even higher.
