Apple (AAPL) Stock: A Great Pick For 2016


Apple Inc. (NASDAQ: AAPL)

Apple is looking like a great pick for 2016. While many would argue that the company has quite a few unknowns, I beg to differ. Today, we’ll talk about why AAPL is likely to climb next year.

iPhone Sales In China

With the iPhone, Apple has taken a stronghold over the smartphone market. Now AAPL is looking to Chinese consumers to further expand its market share, and that’s working. In fact, it has become widely known that Apple products, such as the iPhone, are favorites of Chinese consumers. As a result, in the most recent quarter Apple sold $12.5 billion in China, helping the total year-over-year revenue reach $51.5 billion, a growth of 22%. However, China isn’t the only region that Apple is likely to love next year.

It’s Time For Upgrades

Another thing to consider is the fact that smartphones don’t last forever. Some may break while others become somewhat obsolete. The bottom line is that iPhone consumers love to upgrade to the latest, greatest version of the product. At this point, it’s time for quite a few people to start upgrading which will drive sales further!

Outside Of The iPhone

While most analysts seem to be focusing on the iPhone, it’s important to remember that AAPL has created greatness beyond smartphone technology. Apple Pay is growing increasingly more popular, the iWatch is building an audience, and Apple TV has shown some great news recently – especially with the apps people purchase using the product. All in all, Apple seems poised to grow moving forward.

Apple Analysis

Out of 29 analysts covering Apple Inc. (NASDAQ:AAPL), 26 rate it “Buy”, 0 “Sell”, and 3 “Hold”. This means 90% are positive. $200 is the highest target while $125 is the lowest. The $150.44 average target is 26.98% above today’s ($118.48) stock price. Apple Inc. was the topic in 89 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Goldman Sachs upgraded the stock on November 18 to a “Conviction Buy” rating. Credit Suisse maintained it with an “Outperform” rating and $140 target price in an October 28 report. Macquarie Research maintained the shares of AAPL in a report on October 28 with a “Buy” rating. Stifel Nicolaus maintained the firm’s rating on October 28. Stifel Nicolaus has a “Buy” rating and $150 price target. Finally, Oppenheimer maintained the stock with a “Buy” rating in an October 28 report.

The institutional sentiment increased to 0.96 in Q2 2015. Its up 0.04, from 0.92 in 2015Q1. The ratio is positive, as 82 funds sold all Apple Inc. shares owned while 968 reduced positions. 128 funds bought stakes while 884 increased positions. They now own 3.25 billion shares or 19.08% less from 4.02 billion shares in 2015Q1.

American Asset Management Inc. holds 53.4% of its portfolio in Apple Inc. for 7,252 shares. Nevsky Capital LLP owns 2.56 million shares or 34.75% of their US portfolio. Moreover, Summit Securities Group LLC has 28.14% invested in the company for 459,400 shares. The New York-based Independent Investors Inc has invested 24.49% in the stock. Guild Investment Management Inc., a California-based fund, reported 55,477 shares.

Since March 6, 2015, the stock had 0 insider buys and 8 insider sales for $20.59 million net activity. Maestri Luca sold 2,908 shares worth $325,347. Williams Jeffrey E sold 46,873 shares worth $5.18M. Riccio Daniel J. sold 24,085 shares worth $3.01 million. Ahrendts Angela J sold 44,789 shares worth $5.90M. The insider Levinson Arthur D sold 70,000 shares worth $9.20M.

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company has a market cap of $657.83 billion. The company’s services and products include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. It has a 12.88 P/E ratio. The firm also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.

What Do You Think?

Where do you think AAPL is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.


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