Apple is an exceedingly well run company with attractive profit margins, a wide economic moat, and a loyal customer base, George Budwell writes for The Motley Fool. In addition, Warren Buffett’s Berkshire Hathaway owns an enormous stake in the tech giant.
George Budwell for The Motley Fool:
If you’re looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (AAPL). The tech giant is the largest holding of Warren Buffett’s Berkshire Hathaway, accounting for a whopping 47% of its stock holdings at last count.
Wall Street analysts project that the tech behemoth will grow its revenue by 6.7% in 2024. Mid-single-digit revenue growth is a remarkable achievement for a company with market value of over $3 trillion as of this writing.
One of the key advantages Apple has over its competitors is its extremely loyal customer base… Apple’s loyal customers are willing not only to buy its hardware products but also its lineup of popular services…
Despite its strong performance and growth prospects, Apple’s stock is not overly expensive compared to its peers. At present, Apple’s stock is trading at 29.6 times projected earnings. For comparison, Microsoft shares trade at over 30 times projected earnings, and Amazon shares exchange hands at over 82 times forward earnings. Apple’s shares, in turn, are reasonably valued for a high-growth tech company.
So if you’re looking for a stock that can deliver long-term value and income, you might want to follow Buffett’s lead and buy Apple hand over fist right now.
MacDailyNews Take: Apple remains undervalued for myriad reasons from Android slowly bleeding hare to the one and only iPhone to Apple’s strongly growing suite of services: Apple One, AppleCare, iCloud, Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, Apple News+, Apple Podcasts, Apple Books, etc.
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