549 Billion Reasons to Buy Apple Stock
Apple (NASDAQ: AAPL) has grown to become one of the most relevant and influential companies in the modern economy. But it's also one of the most important U.S. stocks. Apple makes up 7.6% of the S&P 500 and 13.2% of the Nasdaq Composite. It alone can move the market.
The tech giant's size and wide range of products and services give it an advantage over smaller companies that aren't as diversified. And that's especially true in tough economic times. Apple also has plenty of cash to outlast a downturn in the business cycle, and can use that cash to take market share. Although it's harder for massive companies to grow as quickly as smaller ones, Apple has an impeccable track record for growing its top and bottom lines, as well as its free cash flow (FCF).
Apple stock is up 248% in the last five years and a mind-numbing 879% over the last decade. But it hasn't grown its profits nearly as fast. When a company's stock price outpaces its earnings growth rate, that usually means the stock is going to be more expensive.
Source Fool.com
