Trending
Stocks.org
You are at:»»Apple Inc. (NASDAQ:AAPL) a Risky Investment or Not?
apple

Apple Inc. (NASDAQ:AAPL) a Risky Investment or Not?

403
By on Company

Apple (NASDAQ:AAPL) shares have gained strength in the last month as the shares of the company rose by 17 % and are trading at its all-time high. This has made the investors think if apple would be able to maintain this standard for a whole year or not. Kensho, a tool used for answering complex financial questions has given us statistics regarding the trading of Apple (NASDAQ:AAPL) shares. The statistics show that Apple (NASDAQ:AAPL) has been trading positively 80% of the time in the last quarter of the year for a period of 10 years.

The S&P 500 has been trading positively 70% of the time during the same time period in ten years. The median return for Apple shares is 14.88% and for the S&P 500 it is 6.58% for the same time period as mentioned above. However an interesting thing shown by the Kensho tool regarding the trading of Apple (NASDAQ:AAPL) shares is that Apple (NASDAQ:AAPL) gains most in the first half of the last quarter of the year. From 25th Nov to 31st Dec, performance of Apple was positive 70% of the time and the median return on Apple’s shares during this time period was 2.8%.

In the same time period the performance of S&P was positive 100% of the time and its median return was 2.2%. According to a trader on fast money, an American financial stock trading talk show, a person needs to analyze all information when looking at the data and before making a final decision as it can be crucial. In the case of Apple (NASDAQ:AAPL) the thing to consider is that in December, Apple can make a large sale with iPhones.

Everyone has been anticipating to buy the new IPhone 6 and IPhone 6+ and therefore it is the time for the increase in Apple’s share price and it is the time to buy more of Apple (NASDAQ:AAPL) shares and not  to sell as the price may rise further. Apple (NASDAQ:AAPL) had this kind of a rise in its share price two years ago and after that it is now that the company has reached its all-time high. According to Yahoo finance the average price target for Apple (NASDAQ:AAPL) is $115 which is not far away from its current price level above $105.

The increase expected by yahoo finance is only about 10% and this might not be a gain that investors would be looking for. Although a high price target price for Apple is believed to be $143 and if Apple reaches this price then it would be a worthwhile deal for the investors. The dividend payout ratio has also remained sufficiently high over the years as it averaged 30% from 2012 onwards. Also Apple’s dividends present a 1.8% yield which is lower than Microsoft and Intel but is in no way insignificant for the investors. At the end it depends upon the investors to invest their capital in Apple Inc. (NASDAQ:AAPL) or not.

Get Free Updates and Stock Alerts!



*We only send one email per week
Share.

Related Posts

Get Winning Stock Alerts!

Our track record speaks for itself! Our last 7 alerts have delivered combined gains in excess of 300% and there are no signs of slowing down. Join UltimateStockAlerts.com now before you miss out on our next big runner!

We will never sell or share your information.
Close