Apple (NASDAQ:AAPL) and Google (GOOG) have been in a battle for a long time. The Cupertino-based organization spent a ton of its $40 billion war chest to cut down Google's Android. Then again, Apple has done well despite stiff rivalry. Its results are presently superior to Google, and the organization is picking up footing with its iphones. Also, with a strong quarterly dividend and a share buyback in the billions, Apple stock is a superior purchase to Google. Give us a chance to examine whether Apple can produce further solid results going ahead.
Apple continues to grow
Apple's revenue has seen a solid increase on a yearly basis, picking up more than 41% in the last five years. Apple's success story and business sector catching capability isn't showing any signs of blurring without end. The organization has a strong cash position with $100 billion in the bank.
Apple's success could be credited by record sales of iPhones quarter after quarter. The newest ipad's record sales were another advantage for the company and drove results. The exceptionally anticipated iphone 6 is still in the pipeline and the high reckoning of the gadget is an extraordinary sign for Apple.
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- AAPL 15-Year Financial Data
- The intrinsic value of AAPL
- Peter Lynch Chart of AAPL
As far as a chance to sell its products is concerned, there is no shortage of it. The blasting business for smartphones in China, where users are presently moving to 3g devices, is one major open door for Apple. So Apple will discover more takers for its iphones as a result of Chinese smartphone development. Furthermore, the organization is of the notion is that the developing intricacy of network solutions will prompt a knock in its addressable business.
Once the movement to 4g devices in China begins, Apple will have a much greater playing field at its disposal. Presently, telecom significant China Mobile is the one gazing to take off LTE in the country. It started testing its TD-LTE arrangement recently in Guangzhou and Shenzen and is relied upon to formally reveal its system for open use one month from now. When China Mobile's LTE system is sent, we should see more devices supporting the technology and Apple's addressable business sector should increase further and likely at higher margins.
Pile of cash
Apple has a pile of cash. The organization's financials are strong and are relied upon to be better than anyone might have expected later on. As Apple is required to create about $60 billion in cash this year, the organization is certain of financing its investments and innovations. This will positively support Apple, considering that it plans to dole out around $45 billion in the coming three years in the form of dividends and buybacks. Spending on dividend and buyback initiatives isn't an issue for Apple.
Still a good buy
Contrasting Apple's ratios and Google, Apple lags behind Google with trailing P/E of 17, while Google has a trailing P/E multiple of 22. On the off chance that we take a gander at Apple's forward P/E of 12.27, it is pretty much evident that its forward multiple is still lower than its trailing P/E.
Apple still has better prospects. Sound fundamentals, fantastic products, solid budgetary performance and dividends are qualities that make it a stock worth considering. The fact that all these qualities are present in Apple make it a stock worth incorporating in a portfolio.