Apple (NASDAQ:AAPL) stock put together a fantastic 2019, putting to rest some of the doubts that emerged in 2018. The stock rose 89% in 2019. Shares have achieved average annual returns of 26% over the past 10 years as of close on January 6.
The company is set to release its first quarter fiscal 2020 results in late January. In the fourth quarter of fiscal 2019 its services revenue reached an all-time high of $12.5 billion. International sales accounted for 60% of revenue in the quarter. Revenue in Q4 2019 reached $64 billion, which was up 2% from the previous year.
With the launch of Apple TV+, the company is also entering the crowded streaming wars. Its November 1 launch allowed its content to be considered for award shows. "The Morning Show” was one of the first releases to be met with critical acclaim.
For the first quarter of fiscal 2020, Apple is projecting revenue between $85.5 billion and $89.5 billion. In Q4 2019 the board of directors declared a cash dividend of $0.77 per share. This represents a modest 1% yield.
U.S. markets continue to benefit from lowering interest rates and a loose balance sheet from the central bank. However, Apple is trading close to a 52-week high and its price-to-earnings ratio and price-to-book value both demonstrate that this stock is very expensive right now. It last had an RSI of 79, which puts it in technically overbought territory. I still love Apple in the long-term, but the stock is very pricey in early January.
