Is there a case for buying Apple? Apple offers investors an opportunity to ride some of the biggest tech waves, such as (like AI) without as much of the risk of the types of big share price swings some smaller stocks experience. Apple introduces new features and services methodically.
Indeed, Apple shares will never get back to $700, says The Economist.
Apple Stock Forecast
The 30 analysts with 12-month price forecasts for Apple stock have an average target of 243, with a low estimate of 180 and a high estimate of 325. The average target predicts an increase of 4.21% from the current stock price of 233.19.
Yes, it is a good stock to buy. Apple has always been on the list of potential investors. It has shown a notable change in its price earning ratio and has been showing some exponential growth over time.
Apple's stagnating sales and increased debt burden contrast with its rising stock price, making it a risky investment, despite its historical success. The lack of iPhone revenue growth and disappointing new product launches are key issues, while Services growth is insufficient to offset these challenges.
Investors should temper expectations
Wall Street consensus analyst estimates point to revenue and earnings per share increasing at compound annual rates of 7% and 10.6%, respectively, between fiscal 2024 and fiscal 2027. These are healthy growth rates, to be fair.
Based on analyst ratings, Amazon's 12-month average price target is $249.16. Amazon has 13.80% upside potential, based on the analysts' average price target. Amazon has a consensus rating of Strong Buy which is based on 47 buy ratings, 1 hold ratings and 0 sell ratings.
The Numbers on Apple Stock
Those gains translate to a 32.3% compound annual growth rate (CAGR) for Apple compared to an 8.3% CAGR for the S&P 500 in that time. That means that $10,000 in AAPL stock purchased 20 years ago would be worth more than $2.71 million today, assuming reinvested dividends.
Apple (AAPL -2.41%), a personal devices and technology behemoth, has set many investors up for life over the years. The stock has returned over 250,000% since 1980. A one-time $1,000 investment back then would be worth over $2.5 million today!
The Future of Amazon
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
The average price target for Apple is $244.77. This is based on 29 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $325.00 ,the lowest forecast is $184.00. The average price target represents 3.34% Increase from the current price of $236.85.
“COST/AMZN/WMT—aka 'The Big Three' will likely gobble ~60%+ of U.S. retail growth this year, so we see Costco's elite share gain as likely to sustain outperformance.” Most of the Street sides with Melich, with 58% of analysts rating Costco stock a Buy, 37% a Hold, and 5% Sell, according to FactSet.
The Google stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
In 2025, analysts anticipate a target price of around $250 — $300 per share for Apple in the middle of the year, potentially rising to approximately $500 by the year's end.
The last big test for the broad stock market was in 2022, when the S&P 500 index fell 18%. Apple stock fell by 26%. So it is far from immune to macro market issues. That said, its strong financial condition is an above-average support mechanism for very long-term investors in the stock.
Apple probably won't split its stock in 2024. The stock price today is about half what it was when the company announced its last split, a four-for-one exchange, in 2020. The company could initiate a two-for-one split to get back to the 2020 post-split trading price, but that strategy might fall flat with investors.
Analysts See 13% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
NEW YORK (AP) — What a wonderful year 2024 has been for investors. U.S. stocks ripped higher and carried the S&P 500 to records as the economy kept growing and the Federal Reserve began cutting interest rates.