Here's Why This Sleeping Giant Is My Top "Magnificent Seven" Stock To Buy in January

3 days ago 4
  • Management guided for double-digit maturation successful its important vacation quarter.

  • iPhone 17 income are disconnected to a beardown start. This bodes good for Apple's fiscal 2026 potential.

  • As Apple's lucrative services concern grows arsenic a percent of wide sales, it could assistance accelerate the company's net growth.

  • 10 stocks we similar amended than Apple ›

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Last June, I made a bull lawsuit for Apple (NASDAQ: AAPL) stock, calling it a "sleeping giant." Since then, the banal has risen astir 27% -- and that includes the stock's crisp drawdown successful the archetypal week of 2026. With specified a beardown summation since that article, has my bull lawsuit changed?

Not astatine all. If anything, it has strengthened.

Since this telephone successful June, Apple's top-line maturation has improved significantly, and the institution guided for adjacent stronger maturation successful the vacation quarter, fueled by a robust caller iPhone lineup.

Of course, my bull lawsuit isn't conscionable astir the iPhone. I deliberation the institution volition person much than 1 catalyst moving successful its favour implicit the adjacent fewer years. Here's a adjacent look astatine the banal today, and wherefore I deliberation its drawdown successful the archetypal week of 2026 is simply a large buying opportunity.

A crowded Apple store.

Apple store. Image source: Apple.

With mostly muted income maturation since the extremity of Apple's fiscal 2022, immoderate investors person apt forgotten however overmuch a palmy merchandise rhythm tin determination the needle for the tech giant. Additionally, immoderate highly pugnacious comparisons successful fiscal 2021 and fiscal 2022 person arguably obscured the company's beardown maturation illustration connected a broader scale. The company's five-year compounded gross and earnings-per-share growth, for instance, is rather impressive.

Going backmost to fiscal 2021, Apple's gross soared much than 33% twelvemonth implicit year. And past successful fiscal 2022, the tech elephantine grew 8% connected apical of that growth. This meant that successful conscionable 2 years, Apple's gross roseate a full of 44%. And adjacent erstwhile you see the 2 fiscal years of muted income maturation that followed, arsenic good arsenic fiscal 2025 instrumentality to mean growth, income compounded astatine an mean complaint of astir 9% annually during this period. And net grew adjacent faster.

And, underneath the hood, we've seen Apple's lucrative services concern consistently turn astatine double-digit rates twelvemonth implicit year. With the conception commanding a gross borderline astir doubly arsenic precocious arsenic its products business, this (along with an assertive stock repurchase program) has helped the tech company's net per stock turn astatine an adjacent faster complaint than revenue. Even more, with Apple's services concern increasing arsenic a percent of full revenue, it volition apt assistance the institution accelerate its wide net maturation illustration successful the coming years.

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