To many people, Apple (NASDAQ:AAPL) is known as a gadget maker. This is true to a certain extent, but there’s more to the story. For example, there are features of Apple’s upcoming products that could actually make you healthier. Also, investors shouldn’t ignore Apple’s strength in its services business. All in all, there are multiple reasons to target $200 or even more if you’re holding AAPL stock.
Do you remember when Apple became part of the “$1 trillion club”? It was a milestone moment when the company achieved a market capitalization of $1 trillion. Then, the next thing you know, Apple was worth $2 trillion.
One big-bank analyst is predicting that Apple could actually grow bigger than that, while another is eyeing an ambitious price target for the company’s shares. For both its products and its services, Apple is still a top-tier tech firm that belongs on just about any investor’s watch list.
What’s Happening with AAPL Stock?
The first thing to be aware of is Apple’s earnings release date, which is scheduled for July 28. This event could have a major impact on the Apple share price, so you’ll definitely want to mark that date on your calendar.
If you can catch AAPL stock in the $150s, you might want to pat yourself on the back for getting a real bargain. Apple’s trailing 12-month price-to-earnings (P/E) ratio of 25.26 is quite reasonable for a technology giant in the 2020s. Plus, Apple pays the loyal shareholders a forward annual dividend yield of 0.60%, so feel free to take a bite of that apple.
What could push AAPL stock to the next level? The most obvious answer would be Apple’s popular products, such as the iPhone. Fair enough, but there’s an angle you might have missed. Did you know that Apple is adding health and fitness features to iOS 16 and watchOS 9 this fall?
The new Apple Watch and iPhone will offer features that focus on 17 areas of health and fitness, according to the company. And right now, users can store more than 150 “different types of health data from Apple Watch, iPhone, and connected third-party apps and devices.”
Viewing Apple from Different Angles
As you can see, Apple is a multi-faceted business. You might never have thought of Apple as a fitness-tech company until today.
There are other ways to look at Apple, as well. For instance, Morgan Stanley analyst Erik Woodring is apparently focused on Apple’s subscription revenue. Woodring states, “a more pronounced shift to a subscription-like model” could add around $1 trillion to Apple’s current market cap.
Woodring maintained an “overweight” rating on AAPL stock along with a $180 price target. Even more ambitious is Wedbush analyst Daniel Ives, who published an “outperform” rating on Apple shares and a price target of $200.
Just Apple’s services segment alone, according to Ives, is worth over $1 trillion. Combine that with Apple’s hardware business, and there’s a “very compelling” risk/reward case at current levels, Ives contends.
What You Can Do Now
From products to services and subscriptions, and even health/fitness features, Apple is a true giant in the tech industry. The company has a great deal to offer its customers, and its shareholders as well.
Could Apple add another $1 trillion to its market cap? It can happen sooner than you might think. It’s wise not to underestimate Apple, and at the current share price, a buy-and-hold investment could provide exceptional long-term returns.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.