Is Apple Stock a Buy Right Now?
2026-07-23 11:30
•Neil Patel •The Motley Fool
•••••• • Axe Capital view
Apple’s Rally Looks Tiring at These Levels
Strong growth, but Apple’s rich valuation suggests caution.
Apple’s recent 22% gain this year reflects solid iPhone 17 sales and a cautious AI spend that keeps free cash flow healthy. Yet, the stock trades near an 18-year high with a price-to-earnings ratio of almost 40, signaling investors are paying a steep premium. South African investors should watch USD/ZAR here—if the rand weakens, it could offset gains from Apple’s US-dollar growth. On the JSE, there’s no direct equivalent to Apple’s tech mojo, but tech-heavy Naspers and Prosus may face pressure if US tech falters. Waiting for a market pullback makes sense before jumping in. The view hinges on US tech holding up and no unexpected earnings disappointments; if Apple’s growth slows or the USD/ZAR reverses sharply, the risk rises. this is just my opinion and not financial advice
I would watch Apple from the sidelines and look for a correction before buying. Meanwhile, stay cautious on Naspers and Prosus given their US tech exposure through Tencent.
- AAPL
- USD/ZAR
- Naspers
- Prosus
- US tech earnings miss
- USD/ZAR strengthening sharply
6/10
Apple shares have climbed 22% in 2026 and hit record highs, driven by strong financial performance, robust iPhone 17 demand, and a measured approach to AI spending that preserves free cash flow. However, the stock's P/E ratio of 39.5 near an 18-year high suggests investors should wait for a better valuation before buying, as the elevated price adds downside risk if results disappoint.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Neil Patel
Categories: Equities, Earnings, Technology, AI, Semiconductors, Financials
Tickers: AAPL
Sentiment: Neutral - While Apple demonstrates strong financial fundamentals (16.6% revenue growth, 21.8% EPS growth, robust free cash flow, and prudent AI spending strategy), the stock is trading at a historically expensive valuation (P/E of 39.5 near 18-year highs). The article recommends keeping it on a watch list but waiting for better entry prices, reflecting a cautious stance despite operational strength.
Keywords: Apple stock valuation, AI spending strategy, free cash flow, P/E ratio, iPhone 17 demand, stock buybacks, capital expenditure
Insights:
- AAPL: Neutral: While Apple demonstrates strong financial fundamentals (16.6% revenue growth, 21.8% EPS growth, robust free cash flow, and prudent AI spending strategy), the stock is trading at a historically expensive valuation (P/E of 39.5 near 18-year highs). The article recommends keeping it on a watch list but waiting for better entry prices, reflecting a cautious stance despite operational strength.