Buy Apple Stock Before It Unleashes This "Next Big Thing"

Don't forget healthcare

Apple set its sights on the healthcare market back in 2019, with CEO Tim Cook declaring that healthcare would someday be known as "Apple's greatest contribution to mankind." That's a mighty big claim. And so far, Apple hasn't seen a major revenue boost from it, save for Apple Watch sales. I think that will change in the years ahead. Current rumors suggest the next version of the Watch will get a non-invasive blood sugar sensor. That would make the Watch a must-have device for tens of millions of people – with insurance footing the bill for many of them. As I said earlier, the Apple Glass device is also likely to have healthcare features. One thing is for sure: Cook would not have made that boast unless he was certain Apple would make good on it. And the potential is enormous. In 2019 Morgan Stanley estimated Apple could reap about $90 billion in fresh annual revenue from healthcare.

Apple Glass VR

In addition to the Apple Glass I've described, Apple is thought to be working on a second headset that will use virtual reality. This rumor comes from another reliable source, Bloomberg's Mark Gurman (89.1% accuracy rate on AppleTrack). This device will more closely resemble Facebook Inc.'s (NASDAQ: FB) Oculus Rift and have a price tag north of $1,000. It's expected to be more of a niche product, but the high price tag should bring higher margins than Apple usually makes on hardware. Gurman suggests we won't see this product until 2023 or so.

How to Play AAPL Stock Now

Apple stock is up 78% over the past 12 months and 230% over the past three years.

It raises the question of how much more upside can there be, even with all the catalysts I've talked about here. But I see Apple going to $200 by the end of 2022 – and then higher from there.

But with the Apple stock price at $142, it's fairly overbought at the moment. Even at current prices, you're looking at gains of about 40% plus the small 0.57% dividend yield.

While investors certainly can establish a position here, buying (or adding more) on a pullback is probably the best way to play AAPL here. There's strong support at about $130, so you could set up a limit buy at about or just above that price level.

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Adam Reynolds 2 months ago Member's comment

What "next big thing?" #Apple just takes other people's ideas and makes them better. They never come up with anything novel on their own. $AAPL

James Madison 2 months ago Member's comment

He's referring to Apple Glass. Though I'm not convinced this will take off. Google Glass bombed. And though Apple's version should be more streamlined, I suspect it will be a fad - like 3D TVs. Cool for a little while, but not the way most people want to "see."