Are Apple shares a purchase before Q1 earnings? – Tradingview news

Apple AAPL has consistently redefined the consumer electronics industry. Its integrated ecosystem – which includes iPhone, Mac, Apple Watch and services such as iCloud and Apple Music – delivers a smooth, interconnected experience that strengthens customer loyalty. Over the past decade, Apple’s share has achieved a remarkable return of 663.6 %.

Recent product launches, such as the Vision Pro Mixed Reality headset, emphasize that innovation remains central to Apple’s growth strategy. Last year, AAPL share rose 34.9 %better than the wider market increase of 24 % and NASDAQ Composite Index ($ Nasx) 30.7% increase.

However, the company has struggled to deliver major updates to its iPhone series, which remains its biggest revenue driver. Last year, the company introduced the long -awaited iPhone 16 Pro and iPhone 16 Pro Max, powered by Apple Intelligence. Although pre -orders indicated a strong demand, the full revenue effect of these new iPhones will become evident when Apple reports its accounting result for 2025 for the first quarter of January 30. Let’s find out if the Apple share is a purchase prior to earnings.

How was Fiscal 2024 for Apple?

Apple’s strong fire and diversified revenue streams provide the resilience during economic downturns. Its focus on premium products enables the company to maintain pricing even under harsh financial conditions. Apple achieved modest growth throughout the financial year 2024. In the last fourth quarter of the 2024 financial year, revenue grew by 6 % to $ 94.9 billion, with earnings increasing 12 % year-to-year. Alone iPhone sales reached $ 46.2 billion, which is an increase of 5.5 % year-to-year. During the Q4 earnings call, management noted a Kantar survey that designated the iPhone as the best-selling model in markets such as the USA, By-China, the UK, Australia and Japan. For the entire financial year, total revenue increased by 2% to $ 391 billion.

In addition to the iPhone 16 Series, Apple Apple Watch Series introduced 10 and AirPods 4 during September quarter. Following the launch, Citi Analyst Atif Malik praised the Ai-driven iPhones and predicted that the upcoming iPhone 17 launch in 2025 would be a significant upgrade. Malik estimates that Apple will sell “85 million iPhone 16 devices in 2024 and 92 million iPhone 17 devices in 2025.” Similarly, Wedbush analyst Dan Ives predicts that the launch of the iPhone 16 can drive Apple’s market value from its current 3.36 trillion to $ 4 trillion in 2025.

On the financial front, Apple maintains a strong liquidity position despite ongoing investment in product upgrades. During the quarter, the company paid $ 2.6 billion in due debt, and ended with $ 107 billion in total debt and $ 157 billion in cash, cash and marketable securities.

Apple’s yield provides stability for income -focused investors, supported by its robust free cash flow. In the fourth quarter, the company returned $ 3.8 billion through dividends and $ 25 billion through stock buy -out purchases. Apple has raised its dividend for 13 consecutive years, including an increase of 4 % to 0.25 USD per year. share in the 2nd quarter of the financial year 2024. With a forward payout percentage of 12.1 %, Apple has plenty of capacity for future yield increases. Although its current yield yield of 0.41 % is below the average for the technology sector of 1.4 %, the combination of consistent yield growth and aggressive share repurchases provides a compelling opportunity for total return for investors.

What is in store for Q1 2025?

Management expects a double-digit growth in service turnover for the first quarter of the financial year 2025. But given the wider macroeconomic environment, the total revenue is expected to grow in the low to medium-single digits with a gross margin expected to be between 46 % and 47 % . Analysts estimate that Apple’s first quarter turnover in the 2025 financial year is around $ 124.09 billion, which represents an increase of 3.7 % from year to year, with a earnings expected to be $ 2.35 per share, reflecting an increase of 7.8 %. Looking ahead, analysts predict that Apple’s revenue will grow by 5.7 % in the financial year 2025 and reach $ 413.3 billion, with a further increase of 8.04 % expected for the financial year 2026. 9.2 % in 2024 to $ 7.30 per year. share, followed by a 12 % increase in 2025, driven by the launch of the new AI-driven iPhone 17.

What does Wall Street say about Apple shares?

Recently, Goldman Sachs analyst Mike NG confirmed his “buy” rating for AAPL and set a price target of $ 280. NG expects upcoming product launches and growth in Apple’s service segment to boost the company’s performance in the coming quarters. Morgan Stanley analyst Erik Woodring expressed a similar feeling and maintained his positive vision. He emphasized that, despite short -term macroeconomic challenges, Apple is expected to demonstrate resilience through the 2025 financial year and then.

On Wall Street has the Apple stock one “Moderate purchase“Consensus assessment. Among the 36 analysts covering the share recommends 17 a “strong purchase”, five evaluates it for a “moderate purchase”, 10 suggests a “team”, one recommends a “moderate sale”, and three evaluate it for a “strong Sales ”. With an average price target of $ 243.31, analysts expect a potential upside of about 8.7% over the next 12 months. The highest price target is $ 325, indicating that the share may rise as much as 45.3% from the current level.

With 30x forward 2025 earnings, Apple shares appear to be expensive. However, its earnings growth, significant cash flows and shareholder returns highlight the company’s ability to navigate technological trends. While Apple’s trademark loyalty and ecosystem provides a competitive advantage, it constantly requires innovation to maintain market shares in relation to aggressive competition. The company’s long -term growth prospects remain solid, driven by its thirst for innovation, entry into new markets and the expanding service segment, making it an attractive investment opportunity.

On the release date, Sushree Mohanty did not (neither directly nor indirect) positions in any of the securities mentioned in this article. All information and data in this article is solely for information purposes. For more information, please see Barchart Disclosure Policy here.

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