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Apple Stock Basic Analysis

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When running the most basic analysis of an individual stock, I only really look at five basic metrics: Past performance, PE Ratio (Forward and Trailing), Market Cap, Trading Volume, and the Dividend Yield.

In terms of past performances for Apple stock, Apple has grown by 193.17% over the past five years. My first thought is to identify the forward PE Ratio as the growth has been above average over the last five years.

The forward PE is the predicted future Price to Earnings ratio using future predicted Earnings Per Share (EPS) rather than using the current EPS. Apple’s current forward PE ratio is 12.78. This is relatively low since there is definitely room for the stock to grow when compared to the current 17.23 PE Ratio.

My next area of inspection is the dividend yield. As of today, Apple’s current yield is 1.44% or $2.52. This means that, annually, if one owns Apple Stock, Apple will pay them $2.52 annually per share or 63 cents per quarter.

So far APPL is up in the ranks, a forward PE below 15 and a fair sized dividend yield. 

Today shares are down 3.37%. In my opinion, this appears to be a buying opportunity. It is common knowledge that, when a stock is trading down, the concept of intrinsic value can apply meaning. You are essentially buying something on discount and waiting for a higher price at a later time.

With the stock down today, it would only make sense that the trading volume is high. The three-month trading volume average is about 38M shares per day, and today’s average with four hours left to trade is at 37M. APPL is certainly more volatile, meaning most days the stock will not be moving up and down by 3%+/-.

Based on all of this information, I personally will be purchasing APPL shares today, especially because of the low Forward PE.

DISCLAIMER: Cameron is not a certified financial advisor and all things stated should be considered solely as entertainment and NOT for financial transactions.

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Apple Stock Basic Analysis