Shares Of Apple Are A Buy Before The Holiday Season -- Here’s Why

NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

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Apple, Inc. (AAPL), the US’ most valuable company, designs and manufactures smartphones, personal computers, tablets, wearables, and accessories. It has a massive and growing global customer base for its iPhones. The company also sells software, services, accessories, networking solutions, and digital content and applications. It primarily operates via two segments – Products and Services.

AAPL is one of the best performing stocks in 2020, with the company generating record revenue and income growth. In its fiscal fourth quarter ended September 2020, AAPL posted revenue of $64.7 billion, led by record Mac sales and Services. International sales accounted for 59% of the company’s top-line. EPS for the quarter came in at $0.73, compared to the year-ago value of $0.76.

The work-from-home and home learning COVID-19 requirements this year have driven sales of AAPL’s smartphones, computers, and other core products. Consequently, the stock has gained nearly 70% year-to-date. This impressive performance and the expectation of more gains based on a several factors have helped it earn a “Buy” rating in our proprietary rating system.

Here is how our proprietary POWR Ratings system evaluates AAPL:

Trade Grade: A

AAPL is currently trading higher than its 50-day and 200-day moving averages of $117.14 and $95.51, respectively, indicating that the stock is in an uptrend. Indeed, the stock’s 4.3% return over the past month reflects short-term bullishness.

AAPL recently unveiled its new line of Mac products. The company has introduced a new MacBook Air, a 13-inch MacBook Pro, and a Mac mini powered by the M1 Processors–the first generation of internally produced chips by the company. Though customers can still buy AAPL products with Intel (INTC)'s chip, the company’s shift to the new chip, the specs for which look solid, is happening rapidly

AAPL also unveiled four new iPhones in October, representing its first 5G iPhone lineup. The line includes the iPhone 12 and 12 Mini, the iPhone 12 Pro, and the 12 Pro Max. Offering customers a range of prices, the line should help generate significant revenue. The company has also unveiled its HomePod Mini. Finally, in September the company updated its Apple Watch, the iPad and iPad Air, and introduced Apple One, its new Services bundle.

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