Investment Selection

Investment Selection: Apple Inc. Stock
Author’s Name
Institutional Affiliation

Abstract
This paper aims to select marketable security in the U.S. market and research its viability for investment. Apple Inc.’s stock is one of the most attractive investments in the U.S. market. Adding it to one’s marketable security investment portfolio will be a prudent idea because of its associated benefits relative to other stocks in the market. Apple’s stock is highly marketable, which means that a potential investor can easily buy them in their low periods and sell them profitably in their high periods. A search into the technology giant’s financial statements reveals that value of the Apple’s stock has consistently improved over the years and any investor who put in them is assured of high returns and capital gains in the long-run. The data on Marketwatch (2018) shows that Apple’s stock is currently up 25% compared to the previous year 2017, trading around $194, which is way above its historical highs.
Keywords: Apple’s stock, valuation, marketable security

Investment Selection: Apple Inc. Stock
Even if there have been times in the history of Apple (NASDAQ: AAPL) when an investor would have noted some significant declines in the value of its shares, the general history of trading in Apple’s stock has consistently been one of great gains. Currently, Apple Inc. remains at records high, and its securities bear aggregate annual returns exceeding 35 percent. According to Gurufocus (2018)., this return level has been consistent for the last 15 years, even in those periods when markets have been shaky and unpredictable.

So, choosing to put in NASDAQ: AAPL is not by any chance imprudent. First and foremost, Apple’s stock is highly marketable, meaning that a potential investor can easily buy them in their low periods and sell them profitably in their high periods. Furthermore, Apple Inc. is a quality-driven company, and this makes its current stock valuation fairly attractive.
The data on Marketwatch (2018) shows that Apple’s stock is currently up 25% compared to the previous year 2017, trading around $194, which is above its historical highs. From 2013, average prices of Apple’s stock have never been below $73. However, the most bullish highs it has ever touched is $194, where it currently is in 2018 (Historical Stock Prices, 2018). The price has been increasing consistently over the years. From its financial statements, it is evident that Apple’s twelve-month cash and cash equivalent marketable securities increased from $41, 601.00 million in 2015 to $67,155.00 million in 2016 (Ahmar, 2016). For the fiscal year 2017, Apple Inc.’s marketable securities were valued at $74,181.00 million, which was quite an impressive improvement (Reuters, 2017). Relatively, winning stocks tend to remain promising over time. Thus, the fact that NASDAQ: AAPL performs impressively in the market is in itself a positive driver of its potential returns moving forward. Therefore, from a wider perspective especially in terms of valuation, momentum and financial quality, Apple’s stock is a quite promising investment choice in the U.S. at current prices.

References
Ahmar, A. (2016). Predicting Movement of Stock of Apple Inc. Using Suite Indicator.
Gurufocus. (2018). Apple Cash, Cash Equivalents, Marketable Securities (AAPL). Retrieved July 29, 2018, from https://www.gurufocus.com/term/Cash and Equiv/AAPL/Cash,-Cash-Equivalents,-Marketable-Securities/Apple Inc
Historical Stock Prices. (2018). Retrieved July 29, 2018, from https://www.nasdaq.com/symbol/aapl/historicalMarketwatch. (2018). Annual Financials for Apple Inc. Retrieved July 29, 2018, from https://www.marketwatch.com/investing/stock/aapl/financials/balance-sheetReuters. (2017). Apple Inc (AAPL.O) Financial Statement. Retrieved July 29, 2018, from https://www.reuters.com/finance/stocks/income-statement/AAPL.O