Apple Stock Back in Headlines on Business Venture Updates

AAPL has added 44% over the past year

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Apple Inc. (NASDAQ:AAPL) is the largest company in the world by market company, with a valuation of $2.8 trillion. The massive tech name specializes in consumer electronics, software, and online services. AAPL is also one of the Big Five American information technology companies, alongside Alphabet, Amazon, Meta, and Microsoft. At last glance, AAPL is trading up 2.2% at $178.17.

Apple launched its latest new service, Apple Business Essentials, on March 31 which is now available to small businesses in the US. The service combines device management, 24/7 Apple support, and iCloud storage into subscription plans. AAPL also unveiled new AppleCare+ for Business Essentials options that can be added to any plan. Additionally, the tech name revealed that a two-month free trial will be available to all current customers, including those who have been using Apple Business Essentials in beta.

Apple stock has increased about 44% year-over-year and has added 46% since dropping to its 52-week low of $122.25 last May. However, shares of AAPL sitting on the equity's year-to-date breakeven mark and have shed 2% since hitting an annual peak of $182.94 earlier this year. Moreover, Apple offers a dividend yield of 0.50% with forward dividend of $0.88.

Apple stock is currently overvalued from a fundamental point of view when considering its growth rate. Although AAPL reported extraordinary figures for fiscal 2021, growing revenues by 33%, the tech company is expected to see that rate slowed significantly in the coming years.

AAPL currently trades at a high forward price-earnings ratio of 29.94 and an inflated price-sales ratio of 7.91. Nonetheless, the tech name should continue to expand its business long-term, making it a viable and relatively safe option for long-term investors despite the short-term valuation.

Lastly, short-term options traders have been much more put-biased of late. This is per Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 1.05, which sits higher than 94% of readings from the past year. 

Analysts, however, are extremely optimistic. Heading into Monday's trading, 20 of the 21 covering brokerage firms sport a "buy" or "strong buy" rating.

 
 




 
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