Type of paper: Essay

Topic: Apple, Steve Jobs, Investment, Company, Stock Market, Growth, Samsung, Stocks

Pages: 3

Words: 825

Published: 2020/11/01

DateI choose to analyze Apple Inc. because it is one of the highest profit generators for the year and is growing at increasing speed. Also it has made its presence felt all around the globe. The company has beat competition and grown to be the highest seller of Iphones in 2014.
One of the reference article suggests that the stock of Apple Inc. is a best buy and should be bought now without wasting any time. Apple Inc. reached number four on the Dow Jones Industrial average and was one of the best buys of 2014. The share prices went up nearly 30 percent in the year. Apple Inc. showed growth as well as value. The dividends are regularly paid and the value of stock has been constantly increasing. There is also a different opinion about the same. A list of stock better valued than Apple have been provided such as Netflix, Time Warner and Cisco Systems. Many investors suggest these to be better buys as compared to the stocks of Apple Inc. The stocks of these three companies are rated higher than the stock of Apple hence it has been advised to buy them and not invest in Apple.
The investment in the stock of Apple Inc. is a low risk investment as compared to other stocks as a whole. The stock prices are rising and the company is growing and generating profits like never before. The company is also regular in payment of dividends and ensures that the investors are happy. Though the company does face challenges, it has been ranked as one of the highest profit generators for the year.
The major competitors of the company are Google, Microsoft and Samsung. The competition is increasing but the company has maintained its customer and service base. The company is large in relation to its competitors but the competition is increasing from Microsoft as well as Google. As per The Wall Street Journal, there was close competition among Apple and Samsung. Samsung overtook Apple in the beginning of the year but the introduction of Iphone midyear changed the game for both the companies. Since then Apple has been leading the way.
The earnings of the company are constantly growing. Analysts forecast a growth of 13% over the next five years. The company is growing at the growth rate of 29% per year. . The growth rate is highly promising and shows that the company is only going upwards from here. The investors aren’t complaining because the stock value has been growing along with the growth of the company.
The company is extremely profitable. It has posted the highest profits in the last quarter. The revenue was increased by 30% over the year. The quarterly revenue of the company was $74.6 billion making it the most profitable company. The price to earnings ratio of the company for 2014 was 18.43 and it is estimated to be 14.26 in 2015. The ratio tells us that the shares are trading high and the company is soaring high.
The company has a dividend and its dividend yield is 1.60%. It was also declared as the top dividend giants by the Forbes. .The future of the company seems to be highly promising and the earnings for the last quarter show the same. The company sold one billionth phone in the last year and has recorded the highest earnings in the quarter. The company is definitely growing by leaps and bounds and its future appears to be promising. China sales have grown by 18% and still show a bright future. The company has generated maximum revenue from the sales of Iphone. It earned a profit of 40% per product sold by the company. This shows that the company is faring well in terms of sales and revenue generation.It trades on NASDAQ and its symbol is that of a slightly eaten apple.
I would recommend the purchase of the stocks of Apple Inc. because it is ranked high on the Dow Jones average, it is one of the highest growing companies. Apple has also recorded the highest profits in the last quarter and regularly pays dividends. Due to the high profits, the value of the company’s stock has also gone up. The company has a good past record and also shows a promising future. The stocks of the same should be purchased. There may be a few other companies which are ranked higher than Apple but looking at the growth and dividend yield, the company looks to be bright and promising. The company ensures that the investors are happy and regularly maintains a proper level of dividends. The growth in stock also shows that the investors are adding value to their investment. The investment is low risk and high return which is the most preferred investment by any investor. The company is sitting at the top most position and generating high revenues as well as adding value and goodwill for the investors. I would recommend purchase of the stock of Apple Inc.

AAPL Inc. growth rates. 2015 Jan 30. <http://www.nasdaq.com/symbol/aapl/pe-growth-rates>.
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Apple Dividend Yield (TTM). 30 Jan 2015. <http://ycharts.com/companies/AAPL/dividend_yield>.
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Chart of the day: How Apple overtook Samsung - for now. 30 Jan 2015. <http://fortune.com/2015/01/30/chart-of-the-day-how-apple-overtook-samsung-for-now/>.
Monica, Paul R. La. Is Apple the perfect stock? 22 10 2014. <http://money.cnn.com/2014/10/22/investing/apple-stock-record/>.
Roden, Sarah. Apple Inc. (AAPL) Posts Most Profitable Quarter In History. 29 Jan 2015. <http://www.valuewalk.com/2015/01/apple-inc-aapl-posts-most-profitable-quarter-in-history/#>.
Samsung vs. Apple: Who Was No. 1? 29 Jan 2015. <http://blogs.wsj.com/digits/2015/01/29/samsung-vs-apple-who-was-no-1/>.
Staff, Motley Fool. Forget Apple Inc., Here are better stocks to buy. 31 Jan 2015. <http://www.fool.com/investing/general/2015/01/31/forget-apple-inc-here-are-better-stocks-to-buy.aspx>.

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