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Apple's growth stock outlook is a topic of interest for many investors. The company's revenue has consistently grown over the years, with a compound annual growth rate (CAGR) of 10.4% from 2010 to 2019.
Apple's revenue growth is driven by its diverse product lineup, which includes the iPhone, Mac, iPad, Apple Watch, and AirPods. The company's ability to innovate and expand into new markets has contributed to its success.
In 2020, Apple's revenue reached $274.5 billion, a 15.4% increase from the previous year. This growth is expected to continue, with estimates suggesting a 12.4% CAGR from 2020 to 2025.
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Apple's Financial Performance
Apple has had its share of ups and downs over the years, but one thing is clear: the company has consistently delivered strong financial performance.
In recent years, Apple's revenue has been steadily increasing, reaching a high of $479,485 million in 2027. This is a significant jump from the $182,795 million reported in 2014.
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Here's a breakdown of Apple's revenue growth over the years:
Apple's earnings have also seen a significant increase, reaching $132,496 million in 2027. This is a testament to the company's ability to generate strong profits.
Free cash flow has been another area of strength for Apple, reaching $158,366 million in 2027. This is a key indicator of a company's financial health.
It's worth noting that Apple's cash from operations has also been increasing steadily, reaching $178,661 million in 2027. This is a sign of the company's ability to manage its finances effectively.
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Analyst Insights
Apple Inc. is covered by 98 analysts, with 40 of them submitting estimates of revenue or earnings used in the report. Analysts' submissions are updated throughout the day.
The forecast earnings growth for AAPL is 10.2% per year, which is above the savings rate of 2.6%. However, this growth rate is slower than the US market's forecast growth of 14.8% per year.
Revenue growth for AAPL is forecasted at 6.5% per year, which is slower than the US market's forecast growth of 9% per year. Despite this, AAPL's earnings are forecast to grow, but not significantly, at 10.2% per year.
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Analyst Sources
Apple Inc. is covered by 98 analysts who provide estimates of revenue or earnings used in reports. These analysts are from various institutions and update their submissions throughout the day.
Analysts like Per Anders Lindberg from ABG Sundal Collier, Mark Rosen from Accountability Research Corporation, and Edward Zabitsky from ACI Research are among those who have submitted estimates. Their expertise and research help shape the market's understanding of Apple's financial performance.
A total of 40 analysts submitted estimates used in our report. This suggests that a significant number of experts have weighed in on Apple's financial prospects.
Here's a breakdown of the analysts who submitted estimates:
Note: This is not an exhaustive list, but rather a sample of the analysts who have submitted estimates.
Bullish Optimism Meets Caution
Bullish optimism is in the air, but not all analysts are feeling the same way. Apple's market capitalization is approaching a staggering $4 trillion.
Some analysts are urging caution, pointing out that Apple has delivered five consecutive weekly gains of 2% or more, a rare streak that has historically preceded negative short-term returns. This is a notable trend worth paying attention to.
Jonathan Krinsky from BTIG is one of those analysts who's sounding the alarm, reminding us that even the biggest companies can experience a pullback. History has shown us that this kind of momentum can be a warning sign.
Apple's Growth and Trends
Apple's growth has been a remarkable journey. The company's transformation from a struggling tech firm in the late 1990s to a high-flying growth stock in the mid-2000s is a testament to its innovative spirit.
Apple spent 2004 to 2016 as a high-flying growth stock, with a run of innovation that brought the world the iPod, iTunes, the OS X, the MacBook, the iPhone, the iPad, and the Apple Watch. This period of growth was unsustainable, and the company started paying a dividend in 2012, a sign of maturation.
The company's AI push is expected to fuel growth, with a multi-year AI-driven iPhone upgrade cycle on the horizon. Wedbush estimates Apple could sell over 240 million iPhones in Fiscal Year 2025, driven by pent-up demand and attractive carrier discounts.
Here are some key sales estimates for Apple:
The integration of Apple Intelligence is projected to contribute an additional $5 to $10 billion in annual revenue, significantly boosting the ecosystem's value.
Sales Estimates
Apple's Sales Estimates are looking strong, with a current quarter estimate of $124.10 billion.
The Zacks Consensus Estimate for the current year is $412.79 billion, a significant increase from last year's $391.04 billion.
Year-over-year growth is estimated to be 5.56% for the current year, indicating a steady pace of growth.
Here's a breakdown of Apple's sales estimates for the next quarter and year:
The number of estimates for the current quarter is 9, indicating a relatively high level of confidence in the estimate.
Magnitude - Trend
The magnitude of Apple's growth can be seen in the recent changes to their consensus estimate.
The current consensus estimate for Apple's fiscal year is 7.43, which is a significant increase from 60 days ago when it was 7.43.
Apple's growth is expected to continue, with a consensus estimate of 8.38 for the next fiscal year.
The magnitude of Apple's growth is not just limited to their fiscal year estimates, but also their quarterly estimates.
In the current quarter, the consensus estimate is 2.36, which is a slight increase from 60 days ago when it was 2.34.
The next quarter's consensus estimate is 1.68, which is a decrease from 60 days ago when it was 1.69.
Here are the consensus estimate trends for Apple's fiscal year and next fiscal year:
Apple's Journey
Apple's Journey has been quite a rollercoaster ride. The company was once considered a technology has-been during the dot-com frenzy of the late 1990s.
In 2000, Apple's growth rate and valuation multiples landed it closer to the value side of the style box. This was a far cry from the high-flying growth stock it would become.
An astounding run of innovation brought the world the iPod, iTunes, the OS X, the MacBook, the iPhone, the iPad, and the Apple Watch. This period of growth lasted from 2004 to 2016.
In 2012, Apple started paying a dividend, a sign of maturation. This marked a shift from its previous high-growth trajectory.
Over the years, Apple has drifted into the middle section of the Morningstar Style Box. This is a significant change from its previous status as a high-flying growth stock.
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Frequently Asked Questions
How much is $10000 invested in Apple 20 years ago?
$10,000 invested in Apple 20 years ago is now worth over $2.7 million, assuming reinvested dividends. This remarkable growth highlights the long-term potential of investing in top-performing stocks
Sources
- https://simplywall.st/stocks/us/tech/nasdaq-aapl/apple/future
- https://www.kiplinger.com/investing/stocks/invested-1000-in-apple-stock-worth-how-much-now
- https://www.morningstar.com/stocks/is-apple-growth-stock-value-stock-or-both
- https://finbold.com/analyst-predicts-apple-stock-to-hit-4-trillion-market-cap-in-ai-driven-growth-era/
- https://www.zacks.com/stock/quote/AAPL/detailed-earning-estimates
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