Can Apple Continue To Climb?

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Mott Capital May 2017 Performance Report

Apple Shares have easily outperformed the Nasdaq this year.
AAPL Chart

AAPL data by YCharts

The stock has been rising recently on expectations of future revenue growth, driven by the anticipated iPhone 8.
AAPL Chart

AAPL data by YCharts

The stock has become increasing more expensive, over the past several months, as measured by the price-to-sales ratio.

AAPL Chart

AAPL data by YCharts

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GDP And Job Growth Around The Corner

 

Despite, this rise, the PS ratio is relatively fairly valued based on the 3,5, & 7 Price to Sales Averages.
AAPL PS Ratio (3y Mean) Chart

AAPL PS Ratio (3y Mean) data by YCharts

In fact, the recent analyst estimates revenue trends suggest there could be more upside potential for revenue expectations to continue to creep higher.
AAPL Revenue Estimates for Next Fiscal Year Chart

AAPL Revenue Estimates for Next Fiscal Year data by YCharts

Using a simple regression model based on past growth, we could see estimates potential rise to nearly $290 million.

Apple Revenue Growth
Apple Revenue Growth

How far that revenue growth goes, is heavily dependent on the success of the iPhone 8.

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Michael Kramer is the Founder and Portfolio Manager of Mott Capital Management LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance