Stock Trading Department—This week’s recommended stocks AAPL

1. Investment Category Identification

AAPL is a typical large-cap growth stock, part of the technology sector, combining consumer electronics and service ecosystem.

2. Category Analysis

Stable hardware revenue base: iPhone, Mac, and iPad are still the main sources of income. New hardware versions create growth cycles. It has a strong competitive edge in high-end consumer electronics.

Services and subscriptions drive future growth: App Store, iCloud, Apple Music, Apple TV+, etc. offer high profit margins and strong user loyalty, which support its valuation.

Innovation is cautious but solid: While not a leader in AI, Apple’s recent push into on-device AI continues its ecosystem strategy.

Global presence but U.S.-focused: Over half of its revenue comes from the Americas, facing risks from exchange rates, tariffs, and geopolitics.

3. Investment Style Judgement: Quality Growth + Defensive Blend

Growth: Continuous revenue and EPS growth, share buybacks increase value per share, and new products like Vision Pro and AI services have long-term potential.

Defense: Strong cash flow, very high return on invested capital (ROIC), steady dividends and buybacks each year provide strong market protection.

Valuation is slightly high but fair: P/E ratio is above average, but the market accepts a premium because of its stable business model, deep tech ecosystem, and strong brand advantage.

4. Core Holding Review and Advice

If AAPL is a core holding, here’s my advice:

Keep holding: The company is fundamentally strong with steady financials. Even if growth slows, dividends and buybacks support it. It’s good for long-term.

Avoid buying too much at current highs: The valuation is a bit high and lacks clear growth drivers. Wait for strong AI, Vision Pro, or hardware breakthroughs.

If it drops below $180, it’s a better mid-to-long term buy-in chance.

Technical view: Currently moving sideways. Watch to see if it breaks resistance or forms a top.

5. Overall Advice

AAPL is a balanced offensive and defensive stock, suitable as a core long-term holding. But growth momentum is lacking now, and valuation is a bit high. Without major good news, just hold and wait for technical or fundamental catalysts to add more.

If AAPL is a big part of your portfolio, consider adding defensive assets like TLT (long-term U.S. Treasury ETF) to reduce risk.

Most importantly, keep an eye on new innovative opportunities like the crypto market. To balance the high potential returns and risks, add TLT to your investment. That way you can aim for high returns with lower risk.