APPLE FINAL.docx - Running head APPLE THE STOCK PICK OF THE...

Running head: APPLE: THE STOCK PICK OF THE FUTURE 1
Assignment One:
Apple: The Stock Pick of the Future
Robert McGrath
Strayer University FIN 534
09/01/2018
Dr. Bassam Hamdan

APPLE: THE STOCK PICK OF THE FUTURE 2
As a proud financial advisor and manager for one of my well-known clients it is my job
and duty to select a company to invest in that is a responsible, lucrative company that will fit
well with his investing goals and objectives. This stock must be well researched because my
client is not just interesting in investing just a few dollars and he trusts me to find the perfect
stock that will keep his money safe with a continual rise in profits year after year. For the course
I have chosen Apple Inc. Not only because they are one of the world leaders in consumer
technology, but I also have been researching their performance throughout the semester, so it is
a perfect fit for both parties. The goal of this report is to report and describe why I chose the
stock specifically for my client, why it fits him best. I will also dig deep into some historical
financial data providing financial ratios for the last three years which will show that the
financials combined with the new and upcoming technologies why Apple is a terrific fit for my
client. As in every stock investment there is a risk, however through the numerous researches
done as well as the financials I will show my client that the upside far outweighs the possible
risks that may be associated with the investment of Apple Inc.
Apple Inc. is a publicly traded company on the NASDAQ and was founded by Steve
Jobs and his partners back in 1976. They started out with the computer business and were the
first big player along with Microsoft in the 80’s and 90’s in the personal computer world. That
was not enough for Apple as in 2001 they broke the market with the iPod, this turned into the I
touch, and the iPhone really took them to the next level. “Apple’s product portfolio includes
iPhone, iPad, mac, iPod, Apple Watch, Apple TV.” (Apple Inc. P. 3). This is the current line of
Apple products. Apple was the first for ground breaking consumer technology. Apple has the
technology and the business model that no other company has been able to mirror. When it
comes to smart phones for example there are two: Apple and Android. Apple has one

APPLE: THE STOCK PICK OF THE FUTURE 3
manufacturer, Apple while android has dozens. Apple has been a leader of the industry for
almost two decades and the financials show it. To the consumer its Apple or northing and even
the jump from 2016 to 2017 is astounding. “The company reported revenues of (US dollars)
$229,234 million for the fiscal year ended September 2017 an increase of 6.3% over fiscal year
2016.” (Apple Inc P. 3). For a company that is already on top and at the highest they have ever
been to still have revenue growth of over six percent in one year is terrific news for any
investor. “Invest only in companies that are “best in breed”. This includes companies that have
tremendously-established brands or that have extremely strong emerging brands, this is key.”