Apple Stock Forecast 2023-2027: Can Apple Reach $1000, $500?

Apple Stock Forecast 2023 is $185

The Apple Stock Price Target (by Analysts) for the next 12 months is $201

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Latest Apple Stock Price

AAPL Stock Price Performance

• Last 1 Month: +10.5%
• Last 6 Months: +9.6%
• Last 12 Months: +27.1%

Apple Stock – Buy or Sell

Net Buy Rating = Buy% – Sell%

• Sept 8th: +59.6%
• Oct 2nd: +65.0%
• Nov 9th: +63.5%
• Nov 27th: +64.8%

Tesla Stock Forecast 2023

Apple Stock Price Target: Analysts

Apple Price Target	$214.8
Rosenblatt	$189
Wedbush	$240
Morgan Stanley	$210
Needham	$195
Tigress Financial	$240

Apple Stock Technical Analysis

The technical analysis for Apple stock suggests strong buy sentiment.

The Relative Strength Index (RSI) with a value of 66.996 suggests a buying trend, while the Stochastic Oscillator (STOCH) at 78.785 and Stochastic RSI at 56.088 also indicate favorable buying conditions. The Moving Average Convergence Divergence (MACD) stands at 3.91, reinforcing the buy indication.

The Average True Range (ATR) at 2.5479 reflects lower volatility, and the Commodity Channel Index (CCI) at 78.6766 supports the buy sentiment. However, the Williams %R at -17.703 signifies an overbought condition, which should be considered. In terms of moving averages, the short-term MA5 and MA10 support a selling trend, while the longer-term MAs indicate a strong buying sentiment

Apple Stock Price Prediction for the Next 5 Years – Aggregated

• Apple Stock Price Prediction 2023 is $199
• Apple Stock Price Prediction 2024 is $249
• Apple Stock Price Prediction 2025 is $293
• Apple Stock Price Prediction 2026 is $334
• Apple Stock Price Prediction 2027 is $373

Apple Stock Forecast Today, Tomorrow and Week

• Apple Stock Price Prediction in the next 24 hours is between $178 and $202
• Apple Stock Price Prediction this week is between $173 and $212

Apple Stock Forecast: Earnings

Latest Earnings (Q3 2023)

Apple reported its fiscal 3rd quarter earnings and the company was able to beat the Wall Street earnings expectation while it met the Revenue expectation. The company reported an increase of 8% in sales which was mostly driven by services sales. Apple reported a drop in the iPhone revenue WRT to the last quarter. Here is a brief summary of Apple’s earnings with respect to the Wall Street expectation:

Apple’s revenue for the quarter was $81.80 billion, which slightly exceeded analysts’ expectations of $81.55 billion. However, this represented a 3.9% decrease compared to the same quarter last year.

The adjusted earnings per share (EPS) for Apple were $1.26, in line with analysts’ expectations of $1.20. This marked a significant 20.9% increase from the EPS in the same quarter of the previous year.

In terms of specific product revenues, iPhone sales amounted to $39.67 billion, slightly below analysts’ expectations of $39.79 billion, with a marginal 0.2% decrease from the previous year.

Services revenue reached $21.21 billion surpassing analysts’ expectations of $20.77 billion, showing a healthy 10.5% increase from the same quarter last year.

Mac sales brought in $6.84 billion, which was slightly higher than analysts’ expectations of $6.37 billion, resulting in a 6.2% growth from the previous year. On the other hand, iPad sales generated $5.79 billion, slightly falling short of analysts’ expectations of $6.33 billion, experiencing a decline of 19.5% compared to the same quarter last year.

As for wearables revenue, it amounted to $8.28 billion, just below analysts’ expectations of $8.38 billion, but still showing a decent 2.9% increase from the previous year.

Overall, Apple’s performance in the fiscal third quarter was mixed. The company met analysts’ expectations for revenue and adjusted EPS, but it missed expectations for iPhone revenue and iPad revenue. Apple is however experiencing a growth in its services business.

Summary of Last 4 Quarterly Results

(USD)	June 2023	Mar 2023	Dec 2022	Sep 2022
Revenue	81.8B	94.84B	117.15B	90.15B
Net income	19.88B	24.16B	30B	20.72B
Diluted EPS	1.26	1.52	1.88	1.29
Net profit margin	24.3%	25.48%	25.61%	22.99%
Operating income	23.0B	28.32B	36.02B	24.89B
Net change in cash	4.92B	5.15B	-3B	-3.88B
Cost of revenue	45.3B	52.86B	66.82B	52.05B

Apple (AAPL) Stock Forecast 2023: Fundamental Analysis

Profitability

Apple is a highly profitable company. In the past year, it had a net income of $99.6 billion, which represents a 25.31% profit margin. Apple also has a strong operating cash flow of $111.9 billion.

Ratios

Apple has a number of strong financial ratios. Its return on assets (ROA) is 27.51%, its return on equity (ROE) is 156.08%, and its return on invested capital (ROIC) is 45.31%. Apple’s ROIC is significantly higher than the industry average of 16.72%.

Margins

Apple has some of the highest profit margins in the industry. Its gross margin is 44.13%, its operating margin is 29.82%, and its net profit margin is 25.31%.

Solvency

Apple is a financially sound company. It has an Altman-Z score of 8.02, which is well above the threshold of 2.6 for financial distress. Apple also has a debt-to-free cash flow ratio of 1.12, which is well below the industry average of 2.82.

Liquidity

Apple is also a very liquid company. It has a current ratio of 0.99 and a quick ratio of 0.94. These ratios indicate that Apple has enough short-term assets to cover its short-term liabilities.

Growth

Apple has a history of strong growth. Its revenue has grown at an average annual rate of 7.61% over the past five years. However, in the past year, its revenue has decreased by 2.80%.

Valuation

Apple is a relatively expensive stock. It has a price-to-earnings (P/E) ratio of 29.88 and a price-to-forward earnings (P/F) ratio of 27.33. However, Apple’s P/E ratio is in line with the industry average, and its P/F ratio is slightly higher than the industry average.

Dividend

Apple pays a quarterly dividend of $0.14 per share. This yields a dividend return of 0.53%, which is lower than the industry average of 2.99%.

Overall Assessment

Apple is a strong company with a long history of profitability and growth. It is a leader in the technology industry and has a number of competitive advantages. However, Apple is a relatively expensive stock, and its dividend yield is lower than the industry average.

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Can Apple Stock Reach $1000? Historic Data

• Apple needs to rise nearly 7 fold to reach $1000
• The stock has risen 7 fold over the last 9 years. Between 2013 and 2019, the stock rose 3 fold while it rose 2 fold between 2019 and 2023
• During that period, iPhone users globally have risen nearly 4 fold or about 21% of the world’s population. EPS rose 3-4 fold during that period
• It is unlikely that iPhone users will rise 4 fold again in the same period. Even if the share of other products and services were to rise at a faster pace, it is unlikely Apple EPS will rise at the same pace as the last 9 years
• At a slower pace, Apple is likely to reach $1000 only after 2032 and probably between 2035 and 2040 [2036 assuming growth of 15% per annum]
• However, this assumes the current product and service profile. Newer Innovations that expand the market for Apple products could completely transform the equation and speed up the pace of growth.

A Look at Valuations of Stock to Reach $1000

Apple is currently trading at price to price-to-earnings ratio (P/E) of 30.1 and has earnings per share (EPS) of 5.95. Now the service segment is projected to grow at a compound annual growth rate (CAGR) of 3% through 2030 from 2021 and generate $388 billion and the service segment is expected to grow at a CAGR of 18% to $304 billion. Hence, total revenue by 2030 is expected to be $692 billion of which the service segment will contribute 44% and the hardware segment will contribute 56%.

Similarly, earnings per share are expected to reach $7.96 by 2026 from $5.61 in 2022 and grow at a CAGR of 7.24%. Considering the growth potential of the service segment, it will be modest to assume a CAGR of 10% for the next 10 years.

*Source: Tradingview

The earnings are expected to reach $14.55 by 2031. The five-year mean P/E is 24 and P/E is expected to grow further for the next few years due to the service segment. Assuming a modest  P/E of 25, the target share price for 2031 comes out to be $363. Hence, $1000 is just too far away even for a growing and stable company like Apple Inc.

Can Apple Stock Reach $500

Yes, even at a conservative 15% per annum, Apple could reach $500 by 2031. Changes in Valuations, as well as product innovations, could speed up the time frame to 2029 or even earlier.

Also Read: Apple Stock Forecast 2023

Can Apple stock reach $1000?: Conclusion

It is likely that Apple will reach $1000 somewhere between 2035 and 2040. However, this could speed up if Apple launches a new product category that can create an entirely new revenue stream for the company. The biggest risk for Apple is Tim Cook’s retirement.

Apple Stock Split

Apple (AAPL) Stock Forecast 2023: Factors that Will Impact Apple’s Share Price in 2023

• Valuation is all that matters- 2022 has been harsh for high-valued stocks. Various stocks like Shopify Inc (NYSE: SHOP) fell drastically due to high valuation metrics and poor earnings to fall back to. For Apple Inc., the current P/E ratio stands at 29.53. Its annual earnings per share came at $5.95 and hence the share price is trading at $175.7.

Now, the P/E of 29.18 is slightly higher as compared to its peers. For example, Alphabet Inc shares are trading at a P/E of 28.6. Although both companies had a really bad quarter, if the FED continues to hike the interest rates, the P/E for Apple Inc. can also cool off a bit.

Additionally, the earning forecast for the next financial year is $6.32 per stock. Taking the cooled-off P/E of 20x, the price target for 2023 comes only at $126 or so, which is approximately 29% below the current stock price. The extent to which P/E cools off depends on the FED interest rate hike. But if Apple shares have to march towards the $180 target in 2023, then earnings should outperform the market expectations by quite some distance.

• The Service sector is the next big thing – Whenever Apple Inc. reports quarterly results, all eyes are on iPhone sales, but quite secretly, it’s their service business that has been growing rapidly over the recent years. It has contributed more than 20% in revenue in the recent results and even a greater share in the overall profits. This segment supports a high gross margin and hence sponsors almost one-third of the overall income of the company.

The macroeconomic factors weighed down growth in the service business due to a drop in digital advertising spending and increasing foreign exchange rates. But once the economy is on the right path, there is no structural reason for the service businesses not to give double-digit growth. In fact, it will be the main driver if Apple shares have to march to $180 in 2023.

• Growth in the hardware sector –  The hardware sector for Apple has also raised eyebrows. The company’s largest revenue segment remains the iPhone and stellar growth is not expected in this sector in the coming year. This is because the iPhone’s sales have increased over 10% YoY in the latest quarter.

However, Apple does not have great hardware products in the pipeline. Moreover, the recently launched iPhone 14 did not receive great reviews, and the holiday season was expected to go muted for Apple in terms of iPhone sales. Nevertheless, Mac sales increased 25% in the latest quarter earnings, and interestingly, nearly half of the Mac buyers were new to the product.

In 2023, growth in the hardware segment is likely to remain dull and that is one big reason to be not outrightly bullish for Apple. It is expected to ride the tide of macroeconomic uncertainties, but the possibility of double-digit growth especially in the hardware segment is very bleak.

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.