Apple shares have surged 17.6% in the past three months, outperforming the sector, driven by strong iPhone 17 sales and U.S. investments. The company expects mid to high single-digit growth in the fourth quarter. However, tariffs may impact earnings and competition in AI remains a concern.

Apple’s iPhone sales and Services segment are expected to drive growth, with the company expanding Apple Intelligence and adding new games. Apple TV+ received 22 Emmys, boosting its streaming service’s popularity. The Zacks Consensus Estimate for fiscal 2025 Services sales is $108.29 billion.

The Zacks Consensus Estimate for Apple’s fourth-quarter fiscal 2025 earnings is $1.74 per share, with revenues expected to reach $101.27 billion. However, Apple’s stock is considered overvalued, with a Value Score of D and higher P/S ratio compared to peers.

Investors holding Apple shares are advised to continue based on iPhone sales growth and U.S. investments. But prospective investors should consider stretched valuation and AI competition. Apple currently holds a Zacks Rank #3 (Hold), suggesting a wait-and-see approach for entry points.

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Read more at Nasdaq: Apple Jumps 18% in Three Months: Buy, Sell or Hold the Stock?