Small-Cap Stocks Are Vanishing. 5 Funds to Play the New Landscape.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2024
0mins
Should l Buy AAPL?
Source: Barron's
Small-Cap Stocks Underperformance: Small-cap stocks have significantly underperformed large-cap stocks over the past decade, despite the historical expectation of higher returns due to their associated risks. Factors contributing to this trend include the rise of ETFs favoring larger companies and a decline in the number of publicly traded small firms.
Shifts in Market Dynamics: The growth of private tech companies and regulatory changes have led to fewer IPOs for small-cap stocks, while sectors like healthcare are seeing innovation and potential growth. Active management strategies are being advocated to focus on profitable small-cap investments amidst these market shifts.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Consumer Psychology: Many Chinese consumers have taken to the internet to post the phrase 'May all your wishes turn orange', reflecting how cultural factors can influence purchasing decisions and contribute to the iPhone 17's popularity.
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- iPhones in Space: For the first time, astronauts will carry iPhones provided by Apple, marking a significant milestone as smartphones are utilized in a space mission, although they have been safely used in commercial space flights for about a decade, reflecting NASA's embrace of modern technology.
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- Nasdaq Divergence: While the Nasdaq remains below key support levels, certain AI stocks are reviving, suggesting a renewed interest in tech stocks that could lay the groundwork for future growth.
- Improved Market Sentiment: The Dow's breakthrough not only reflects optimistic expectations for economic recovery but may also encourage other indices to follow suit, further enhancing overall market vitality and liquidity.
See More
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- Value of Taking Risks: Jobs emphasized that many miss out on opportunities due to fear of asking, arguing that the willingness to take risks and face rejection is crucial for success, enabling dreams to become reality.
- Career Impact: His experience at HP sparked a deep interest in electronics, laying the groundwork for his future entrepreneurial ventures and providing essential technical knowledge that contributed to the founding of Apple.
- Inspiring Young People: Jobs' story encourages youth to pursue their dreams, stressing the significance of reaching out and seeking mentorship, particularly in the fast-evolving tech industry.
See More
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- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
- Mixed Market Reactions: Despite OpenAI and Anthropic's strong performance in AI, Microsoft's Copilot sales have been disappointing, highlighting investor concerns about its future growth and reflecting differing levels of confidence across companies.
See More
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- Cash Flow Status: With capital expenditures projected at $9 billion, the remaining free cash flow will cover both the buyback and approximately $2.6 billion in dividend expenses, demonstrating Disney's ability to maintain healthy cash flow while returning value to shareholders.
- Market Performance: Although Disney's streaming service is growing slowly and its linear networks face challenges, the experiences segment, particularly parks and the rapidly growing cruise business, remains a strong cash cow supporting overall financial performance.
- Long-Term Growth Potential: With the streaming business now profitable and margins improving, alongside guidance for double-digit adjusted earnings per share growth, Disney stands out as a compelling value stock to buy in February.
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