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Market Analysis 27 Oct 2021

analysis Oct 27
  • Reports Q4 2021 results on Thursday, Oct. 28, after the market close
  • Revenue Expectation: $84.85 billion
  • EPS Expectation: $1.23

When Apple (NASDAQ:AAPL) reports its latest quarterly earnings tomorrow, the biggest investor concern the iPhone-maker needs to address is its ability to save the crucial holiday season from disruptions caused by the current global supply-chain crunch.

Apple shares closed Tuesday at $149.32, up about 12% for the year. That performance still lags the tech-heavy NASDAQ 100 Index, which rose more than 19% during the same period. The stock is down about 5% from its September all-time high.
For long-term investors aiming to earn a decent return through dividends and capital appreciation, Apple stock continues to remain a great choice.

Plus, with more than $200 billion in cash on hand, Apple is in an enviable position to further increase its share repurchase program and its dividend. In April, Apple launched a $90-billion share repurchase plan, bigger than the market valuations of more than 80% of the companies in the S&P 500 Index.

*Note: Apple may disappoint some shareholders by lowering its iPhone sale forecast for the last quarter of the year on Thursday as supply-chain disruptions begin to bite. But any post-earnings weakness should be a buying opportunity for long-term investors, given the huge pent-up demand for its products and services.

 

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