- (1:00) – Understanding Apple As An Innovator: Ought to You Be Investing?
- (9:30) – Breaking Down Apple’s Efficiency Over The Previous Few A long time
- (19:45) – How Has Sony Carried out vs The S&P 500 Extra time?
- (27:15) – Taking A Look At IBM’s Lengthy Time period Historical past: May This Match Into Your Portfolio Proper Now?
- (33:30) – Episode Roundup: AAPL, SONY, IBM, VOO
- Podcast@Zacks.com
Welcome to Episode #379 of the Zacks Market Edge Podcast.
Each week, host and Zacks inventory strategist, Tracey Ryniec, will likely be joined by friends to debate the most well liked investing matters in shares, bonds, and ETFs and the way it impacts your life.
This week, Tracey goes solo to speak about Apple. As many long-time listeners of the podcast know, Tracey is just not an Apple investor. Nor does she use its merchandise. That’s proper. She doesn’t personal an iPhone, and by no means has.
However after Apple reported the fourth straight quarterly gross sales decline, the primary time it has executed so since 2001, Tracey determined to take a look at Apple’s gross sales and earnings estimates.
Apple has been the most effective performing shares of the final 20 years. As of Sep 2023, $10,000 invested 20 years in the past, with dividends reinvested, was value $5.08 million. And it retains hitting new all-time highs.
However is the 20-year bull market within the inventory about to finish?
What Occurs When Tech Development Slows
1. Apple Inc. (AAPL – Free Report)
Apple went public in 1980. It’s been a wild journey. Within the Nineties, it was simply 30 days away from chapter earlier than it acquired a bailout from Invoice Gates and Microsoft. Apple went on to make among the most iconic merchandise of the century together with the iPod, the iPad and, after all, the iPhone.
However in fiscal 2023, progress slowed. Within the fourth quarter, iPhone gross sales solely rose 2.8% year-over-year.
Apple’s income is anticipated to rise simply 3.1% in fiscal 2024 with earnings rising 6.7%. That may be wonderful if the inventory was low cost, but it surely’s not. Apple trades with a ahead P/E of 27.4 and a P/S ratio of seven.3.
What valuation are you prepared to pay for Apple’s single digit progress?
2. SONY Corp. (SONY – Free Report)
SONY is just not a stranger to having iconic merchandise. In 1979, it launched a brand new handheld cassette participant it known as the “Walkman.” By 1999, SONY had bought 186 million of the Walkmans and the identify “Walkman” grew to become synonymous with ANY handheld cassette participant with earphones.
Finally, the iPod and different MP3 gamers led to the Walkman’s demise. However SONY has loads of different divisions, together with gaming, music, cameras, and leisure, to make up for it.
SONY’s progress has additionally slowed. It’s anticipated to see income fall 1.4% in fiscal 2024 and earnings to realize simply 1.3%. However it’s valuation can be less expensive. SONY trades with a ahead P/E of simply 15.7. It’s P/S ratio is just one.3.
Is that this a shopping for alternative in SONY?
3. IBM Corp. (IBM – Free Report)
IBM was the dominant know-how firm of the Sixties and 70s. At one level, it produced 80% of computer systems in america. However by 2005, it had exited the PC enterprise altogether.
IBM’s progress has additionally slowed. In 2023, it’s anticipated to develop income by simply 1.1% and earnings by 3.3%. Nevertheless, like SONY, it additionally has engaging valuations. IBM trades with a ahead P/E of simply 15.8 and a P/S ratio of two.2.
However it’s the juicy dividend, presently yielding 4.5%, that draws numerous buyers.
Ought to revenue buyers have IBM on their quick checklist?
What Else do you Must Know About Apple?
Tune into this week’s podcast to seek out out.
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