Free Research Paper On Apple Inc.

I choose to analyze Apple Inc. because it is one of the fastest growing companies and has also registered the highest profits in the last quarter. The company manufactures phones and laptops and has generated maximum revenue after the launch of Iphone 6 which made it the most profitable companies. According to reports, Apple Inc is one of the top 20 companies in the US with the highest revenue generation.
One opinion says that apple is not a good investment because it is not the only one. The article lists out five stocks which crushed Apple Inc. The same are Lithia Motors, Dominos Pizza, Ulta, Tractor Supply and Sherwin Williams. The articles states that it is not advisable to place all your money in one stock. Apple shares gave a return of whopping 306% but these five companies did even better than that. There is another opinion by CNBC which favors Apple Inc as an investment. The analysts suggest a possibility of a $200 billion return from an investment in the company. It amounts to 25% of the market cap back to the investors. This return could take a period of five years but the figure is huge. This also shows a higher probability of returns in the coming three to five years. The shareholders will get more than the investment which will add to their capital appreciation and increase the value of their shareholding.
An investment in the stock of Apple Inc. is low risk because the company has a good track record and the value of stock has not fallen. There have been slight changes but not major changes. Investment in the stock of Apple Inc. will generate good revenue through dividend and also lead to the appreciation of capital. As compared to other stocks, Apple Inc. is performing very well and the company is at its peak currently. The recent reports show that the company has generated the highest revenues and is a very sound investment.
As for competition, the company is quite large. Its major competitors are Google, Microsoft and Samsung. None of the three companies has been capable to outdo Apple Inc. Samsung reached close to the company but the launch of Iphone 6 ensured that Apple Inc stayed at the top. The company has shown that among all the competitors, it is the most profit generating company. The competitors have come quite close but none of the companies have been able to overtake Apple Inc.
The company is growing at the rate of 13.54% annually. Analysts are expecting a growth rate of over 30% in the next five years. This shows an increasing growth rate in terms of sales as well as revenue.
Apple Inc. has reported a profit of $74.6 billion in the last quarter. Hence it is the most profitable company in the US. The revenue is the highest ever generated by the company which ensures its place in the top 20 companies of the US. Apple generated highest revenues after the launch of Iphone 6 which sold the maximum in number.
The price earnings ratio of Apple Inc is 18.43 which means that the price of shares to the earnings on the same is high and the shares are traded at a profit in the stock market.
The company regularly declares dividends. Its dividend yield is 1.60% and the company is one of the highest dividend paying companies in the US. Dividends provide regular income to the investors, hence the stock is again worth buying here.
The future of the company definitely appears to be highly promising. The company has reported to have made the highest profit in the last quarter. The company is also going to launch a watch which is eagerly awaited. This shows that the company is running high on innovation as well as revenue generation. The company has maintained sound policies and earned goodwill. The company shows a promising and bright future.
Apple Inc. trades in NASDAQ and its ticker symbol is that of a slightly eaten apple.
I highly recommend an investment in this stock because the company is one of the highest profit generating company and has shown the best revenue as well as sales figures in the last quarter. An investment in the stock of Apple Inc. will ensure that the investor earns regular dividends and also gets capital appreciation. The stocks are trading at a high and the investor will not have to worry about the risk or losing his money. It is a worthwhile investment and will generate revenue in the long run. The company’s growth rate is high and it shows that the company is growing in all aspects, be it the stock prices or the sales. The company is growing in leaps and bounds. This is a good time for investors to invest in the company because the stock prices are only going to increase in the future, which means higher returns in terms of dividend as well as capital appreciation. As per various analysts, the company will give more return than expected by the stock market, the estimated return is about $200 billion dollars in the next five years. This only proves that investment in Apple Inc. could be the most profitable one as well as least risk bearing.

References

Imbert, F. (2015, Feb 19). $200B Apple capital return possible: Analyst. Retrieved from CNBC: http://www.cnbc.com/id/102438889#.
Ryniec, T. (2015, Feb 19). 5 stocks that crushed Apple. Retrieved from Zacks: http://www.zacks.com/commentary/37925/5-stocks-that-crushed-apple