Apple Stock Is Still ‘Expensive’ But This 1 Catalyst Could Change the Game, According to Analysts

Apple (AAPL) is as soon as once more within the limelight, as Jefferies upgraded the inventory to “Maintain,” reversing a earlier “Underperform,” in response to encouraging iPhone 17 gross sales in addition to providers efficiency. This improve comes on the again of Apple’s record-breaking efficiency within the September quarter, through which the corporate topped analysts’ forecasts when it comes to each revenues and earnings, along with forecasting double-digit positive factors within the upcoming December quarter.

Nevertheless, regardless of this excellent efficiency, analysts proceed to quote a “premium inventory,” resulting in hypothesis that the following wave of positive factors would require innovation in merchandise, together with the soon-to-be-launched foldable iPhone 18.

This optimism arises towards a slightly turbulent technological setting, with the Nasdaq Composite ($NASX) having surged by almost 30% year-to-date (YTD) as traders proceed to rotate into large-cap AI performs. It’s towards this background {that a} {hardware} chief mixed with a rising earnings base has been recognized as vital in sustaining investor curiosity going into 2026.

Apple, the most important expertise agency on the planet when it comes to market capitalization, is headquartered in Cupertino, California, with a present valuation of about $4 trillion. This agency is concerned within the design, improvement, and sale of assorted client electronics in addition to software program merchandise equivalent to iPhone, iPad, Mac, and Apple Watch, in addition to a quickly growing services-based ecosystem that encompasses the App Retailer, iCloud, and Apple TV+ content material.

AAPL inventory is presently pegged at round $271, a achieve of roughly 21% within the final 52 weeks, solely barely outpacing the S&P 500 Index ($SPX) efficiency of 19%. Apple inventory touched a excessive of $277.32 on Oct. 31 as a consequence of steady iPhone gross sales in addition to the corporate’s entry into AI-based merchandise.

From a valuation perspective, Apple is presently priced at a price-earnings ratio of 34.5x and a price-sales ratio of 9.68 occasions, each of that are increased than the business averages. At the same time as an indication of overvaluation, these ratios do level in the direction of a sure pricing energy loved by Apple when it comes to its sustainable revenues. Apple’s return on fairness of 168.5% is a telling indicator of the agency’s capital effectivity, even when analysts concern a sure slowdown in value positive factors.