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Apple (NASDAQ:AAPL) Stock Reclaims $3 Trillion Market Cap; What Comes Next?

Edgar Su / Reuters - stock.adobe.com

Apple (NASDAQ:AAPL) stock again crossed the $3 trillion market cap. This comes for the first time since August, after its shares closed 2.11% higher on December 5. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. Further, two Top Wall Street analysts expect the shares of the iPhone maker to reach $240, the Street-high price target, in the next 12 months. This suggests a further upside potential of 24.08% from current levels. 

Factors to Support Apple Stock

The higher iPhone revenue, ongoing strength in the Services segment, and a growing installed base of active devices will support Apple’s financials and stock. However, the tough year-over-year comparisons may hurt iPad sales. Concurrently, softness in the sales of the Wearables, Home, and Accessories (WHA) segment will remain a drag in the short term.

In the meantime, Wedbush analyst Daniel Ives is bullish about Apple’s prospects and maintained a Buy rating on the stock on November 24. Ives’ optimism stems from strength in iPhone sales and momentum in the Services segment. It's worth noting that Apple set an all-time revenue record in the Services segment and registered double-digit growth in the fourth quarter. The analyst has a price target of $240 on AAPL stock. 

Echoing similar sentiments, Tigress Financial analyst Ivan Feinseth reiterated a Buy on Apple stock on November 16. Feinseth has a price target of $240 and expects “record iPhone sales and services revenue, along with margin expansion,” to support the company’s financials and enable it to enhance shareholders’ value.

Is Apple a Buy for Long Term?

Apple is a solid long-term stock, thanks to the sustained demand for its iPhones, especially in emerging markets, and a growing Services segment. This is reflected in analysts’ bullish outlook for its stock. 

Apple stock has received 25 Buys and eight Holds, translating into a Strong Buy consensus rating. Moreover, due to the significant appreciation in its value, analysts’ average price target of $201.99 on Apple stock reflects an upside potential of 4.43% from current levels. 

Bottom Line 

Apple will benefit from higher iPhone sales and the ongoing momentum in the Services segment. In addition, the improving supply environment will support its top line. While two Top Wall Street analysts see further upside in Apple stock, the average price target shows limited upside potential due to the recent rally in its share price. 

Nonetheless, Apple is a solid long-term stock, thanks to its record iPhone and Services revenues and its commitment to enhance its shareholders’ value. 

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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