Key Points
-
This consumer favorite has an unbelievable roster of game-changing hardware devices.
-
Analysts believe double-digit earnings growth will continue in the coming years.
-
Provided the price-to-earnings ratio remains relatively stable, this “Magnificent Seven” stock’s rise isn’t over.
- 10 stocks we like better than Apple ›
Looking back at some of the best-performing stocks throughout history is a good way for investors to learn what traits to seek out in businesses they are considering adding to their portfolios. A consistent focus on product innovation, for example, is one powerful characteristic that can lead to robust returns.
Over the past 20 years (as of Feb. 5), this “Magnificent Seven” stock is up 10,650%. Including reinvested dividends, its total return comes out to 12,730%.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Can it keep going higher?
Image source: Getty Images.
Taking a trip down memory lane
A phenomenal two-decade return like that only comes about when a company has been incredibly successful. And that’s the best way to describe Apple (NASDAQ: AAPL).
In the early 2000s, the product that catapulted Apple’s fortunes forward was the iPod, a portable music player that was revolutionary at the time. By the time it was discontinued in 2022, 450 million iPods of various types had been sold.
Then in 2007, the iPhone was released. It was arguably the single greatest consumer tech hardware product ever invented, and cemented Apple’s position as a cultural icon and one of the most powerful brands out there. The market for the device and the other smartphones that have followed in its path is still thriving. The iPhone accounted for 59% of Apple’s revenue in its fiscal 2026 first quarter (which ended Dec. 27).
The company’s other hit products include the MacBook, iPad, Watch, and AirPods, which have all found tremendous success. There are now more than 2.5 billion active Apple devices around the globe, supporting an expansive ecosystem of software and services as well.
These days, Apple is a colossal enterprise. Its market cap of $4.1 trillion makes it the second most valuable company on the face of the planet. But the story isn’t over.
Investors will benefit from earnings growth
Apple’s profits should rise in the future. This isn’t a controversial view at all. Its latest set of financial results should give investors plenty of confidence.
Apple’s revenue soared 16% in fiscal Q1, and diluted earnings per share (EPS) were up 18%. Analysts expect EPS to grow 11.5% per year between fiscal 2025 and fiscal 2028. Investors should gain from the bottom line’s growth. There’s a potential headwind to think about, though, that could work against shareholders. Apple’s price-to-earnings ratio of 34.9 looks fairly valued.
The stock will head higher provided its P/E valuation stays constant or doesn’t decrease by much. However, investor sentiment could turn negative if the market believes, for whatever reason, that Apple is falling behind in the age of artificial intelligence. This could erase any potential optimism.
That bearish a perspective isn’t warranted. Apple shares will march forward. However, they might not beat the market.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 10, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
