From Nasdaq:

Apple stock has been a good investment in recent years, providing a 435% return over the past five years. However, in early 2024, shares have slipped by more than 3%. Analysts are increasingly pessimistic about future earnings growth, as iPhone sales have plateaued and the company’s long-term growth prospects are called into question. Despite a cash flow of $100 billion, repurchases are slowing, and analysts are worried it’s overvalued.

With Apple not being recommended by The Motley Fool Stock Advisor analyst team, the stock is trading at a P/E ratio of almost 30, which is expensive if Apple only grows earnings by 9% annually. An investor may want to stand on the sidelines until Apple’s earnings growth exceeds expectations or its valuation reverts to something more appropriate for a company with a slower growth rate. The Motley Fool Stock Advisor service has outperformed the S&P 500 since 2002.



Read more: Is Apple Stock a Buy?