Is Apple Stock a Buy, Sell, or Hold as Foldable iPhone Rumors Pick Up?

Apple (AAPL) has long been rumored to be developing a foldable iPhone, and the latest reports suggest the technology giant might finalize its specifications by the second quarter of the year. Mass production is likely to start in the fourth quarter of 2026, with the first shipments between 3 million to 5 million. By 2027, shipments could be up to 20 million, which will be Apple’s much-awaited entry into the market for foldable smartphones.

Despite the excitement generated by the prospect of the release, production challenges and high expected costs can be limiting factors in the initial take-up. Kuo quotes the price of the foldable iPhone at more than $2,000, which is much higher than current iPhone prices. Apple will be able to leverage its brand loyalty to create demand, provided the device is satisfactory in quality as well as performance.

About Apple Stock

Apple (AAPL), which is based in Cupertino, California, remains the largest publicly traded company with a market cap of $3.3 trillion. Apple is the leader in the consumer electronics and services sector with its primary segments including the iPhone, Mac, iPad, and wearables, alongside an increasing digital services ecosystem including Apple Music, iCloud, and the App Store.

Apple shares have fluctated in recent months, with shares currently down 13% in the year to date. 

The AAPL valuation remains elevated with a trailing price-earnings ratio of 32.6x and forward price-earnings ratio of 31.3x. The price-sales ratio stands at 8.7x, which is a premium valuation relative to its industry. The price-book ratio of the company at 51.1x also indicates that investors are willing to pay a premium for the strength of the Apple brand and its cash generation ability.

Apple rewards its shareholders with a regular dividend. Apple pays a dividend of $1 per year for each share, with a dividend yield of 0.46%. 

Apple Stock Beat on Earnings

Apple released Q4 earnings per share of $2.40, above Wall Street expectations of $2.36. This was a 1.69% earnings surprise, the most recent in the company’s string of beating expectations. Apple reported above-estimate results in each of the past four quarters, which is a reflection of its solid operating efficiency and the strength of demand for its products and services.

For instance, in Q3 2024, it recorded EPS of $1.64, which was above the market estimate of $1.49, while in Q2, its EPS of $1.40 was above the estimate for $1.34.

Looking ahead, Apple provided conservative Q1 2025 guidance. Analysts project EPS at $1.61, a year-over-year increase of 5.23%. Q2 2025 EPS is projected at $1.49, with a year-over-year growth rate of 6.43%. Full fiscal year 2025 EPS are projected at $7.27, with earnings growth continuing through Apple’s high-margin services segment and cost cutting.

What Do Analysts Expect for Apple Stock?

Apple holds a “Moderate Buy” consensus rating among 36 analysts with an average analyst grade of 3.89. The sentiment among analysts over the last three months has been consistent, although it is down from 4.03. 

17 of the 36 analysts covering the stock have a “Strong Buy” rating, while 5 have a “Moderate Buy” rating. 10 analysts rate the company at a “Hold,” two have a “Moderate Sell” rating, and three have a “Strong Sell” rating. 

The average share price target for Apple is $251.51, which represents 16% upside. The highest target price is $325 while the lowest is $184. The wide range reflects the uncertainty in Apple’s future revenue growth, particularly with the slowdown in hardware sales.

On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.