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Should You Buy, Sell, or Hold AAPL Stock After a 52% Rise in One Year?
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Key Takeaways
Apple gained 52% in a year, driven by iPhone demand, AI innovation and Services growth.
AAPL unveiled major Apple Intelligence upgrades and new AI tools for developers at WWDC 2026.
Apple's Services revenues rose 16.3% year over year to a record $30.98 billion in fiscal Q2 2026.
Apple (AAPL - Free Report) shares have returned 52% in the past year compared with the broader Zacks Computer & Technology sector’s rise of 48.2%.
The company’s shares have also outperformed its peers, which include Amazon (AMZN - Free Report) , HP (HPQ - Free Report) and Microsoft (MSFT - Free Report) , which are also expanding their footprints in the PC and artificial intelligence (AI) domains. While Amazon and HP shares have gained 15.8% and 0.5%, Microsoft shares have plunged 18.2% in the past year.
The outperformance in AAPL can be attributed to robust demand for the iPhone 17 family, record growth in services revenues and strong double-digit expansion across all geographic segments, including Greater China and India. Apple’s integration of advanced AI features, continued innovation in products like MacBook Neo and iPad and expansion in emerging markets are further fueling its exceptional performance.
AAPL Stock Performance
Image Source: Zacks Investment Research
Apple Benefits From WWDC 2026 AI innovations
Apple’s expanding AI footprint has been noteworthy. The company recently announced the next generation of Apple Intelligence at this year’s annual Worldwide Developers Conference (WWDC). This new version of Siri AI is designed to be more conversational, context-aware and capable across Apple devices.
The update introduces enhanced reasoning, personalized assistance, visual intelligence, writing tools and deeper integration with apps and system functions. Apple also announced AI-powered improvements across iOS 27, iPadOS 27, macOS 27, watchOS 27, visionOS 27 and tvOS 27, while emphasizing privacy through its on-device processing and Private Cloud Compute architecture. It also included updates such as stronger parental controls, improved Visual Intelligence features, developer AI tools and deeper integration of AI into apps such as Photos, Safari, Messages, Mail and Shortcuts, making everyday tasks more personalized and efficient.
Further expanding its portfolio, Apple unveiled new AI-focused development tools to help developers build smarter, faster and more adaptive apps. Key updates include new intelligence frameworks, APIs for integrating AI models, enhanced app discoverability through Apple Intelligence and Siri AI and advanced agentic coding features in Xcode 27. The updated Xcode enables developers to leverage powerful AI models directly within their workflows, improving coding efficiency, testing and app refinement. Apple also introduced platform enhancements, which are designed to boost app performance, responsiveness and user experiences across its ecosystem.
Apple’s Prospects to Ride on Strong Services Business
Apple is benefiting from the rapid expansion and diversification of the Services business, which has become a key growth driver of the company’s performance. In the second quarter of fiscal 2026, Services contributed 27.9% of total net sales, with revenues rising 16.3% year over year to $30.98 billion, which was a record in Apple’s history.
The company continues to integrate new features and expand the breadth of its services. Apple recently introduced a range of AI-powered enhancements across its services, set to arrive with its 2027 software releases this fall. Key updates include richer Flyover views and Local Lists in Apple Maps, more flexible item-sharing in Find My and Apple Cash bill-splitting powered by Visual Intelligence.
Apple is also expanding video podcast support on Mac and tvOS, redesigning Shared Albums in iCloud and introducing a new Apple Fitness+ program. The updates aim to make Apple’s ecosystem more intelligent, personalized and collaborative while improving everyday experiences across navigation, payments, media, cloud storage and fitness services.
Apple’s Services business is on a strong upward trajectory, driven by ecosystem expansion, innovation and a focus on both consumer and enterprise needs. For the June quarter, management expects Services to grow at a similar year-over-year rate to the March quarter after removing the favorable impact from foreign exchange.
Apple’s strong product demand, services growth and innovation in AI are expected to benefit the company’s top-line growth.
The Zacks Consensus Estimate for Apple’s fiscal 2026 earnings has increased by a penny to $8.75 per share over the past 30 days, indicating 17.29% growth from the figure reported in fiscal 2025.
The Zacks Consensus Estimate for Apple’s fiscal 2026 revenues is pegged at $478.10 billion, indicating 14.88% growth over the figure reported in fiscal 2025.
Apple shares are overvalued, as suggested by a Value Score of F. The stock is trading at a forward 12-month price/earnings (P/E) of 32.11X compared with the broader Zacks Computer & Technology sector’s 25.36X.
Apple shares are trading at a premium compared with peers, including HP, Microsoft and Amazon. Shares of Amazon, HP, and Microsoft are trading at a P/E multiple of 28.03, 32.03, and 20.52, respectively.
AAPL's Valuation
Image Source: Zacks Investment Research
Conclusion
Apple’s prospects are expected to benefit from its strong iPhone and Services business. Apple’s expanding AI footprint bodes well for long-term prospects. These factors justify the company’s premium valuation.
Apple stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Should You Buy, Sell, or Hold AAPL Stock After a 52% Rise in One Year?
Key Takeaways
Apple (AAPL - Free Report) shares have returned 52% in the past year compared with the broader Zacks Computer & Technology sector’s rise of 48.2%.
The company’s shares have also outperformed its peers, which include Amazon (AMZN - Free Report) , HP (HPQ - Free Report) and Microsoft (MSFT - Free Report) , which are also expanding their footprints in the PC and artificial intelligence (AI) domains. While Amazon and HP shares have gained 15.8% and 0.5%, Microsoft shares have plunged 18.2% in the past year.
The outperformance in AAPL can be attributed to robust demand for the iPhone 17 family, record growth in services revenues and strong double-digit expansion across all geographic segments, including Greater China and India. Apple’s integration of advanced AI features, continued innovation in products like MacBook Neo and iPad and expansion in emerging markets are further fueling its exceptional performance.
AAPL Stock Performance
Image Source: Zacks Investment Research
Apple Benefits From WWDC 2026 AI innovations
Apple’s expanding AI footprint has been noteworthy. The company recently announced the next generation of Apple Intelligence at this year’s annual Worldwide Developers Conference (WWDC). This new version of Siri AI is designed to be more conversational, context-aware and capable across Apple devices.
The update introduces enhanced reasoning, personalized assistance, visual intelligence, writing tools and deeper integration with apps and system functions. Apple also announced AI-powered improvements across iOS 27, iPadOS 27, macOS 27, watchOS 27, visionOS 27 and tvOS 27, while emphasizing privacy through its on-device processing and Private Cloud Compute architecture. It also included updates such as stronger parental controls, improved Visual Intelligence features, developer AI tools and deeper integration of AI into apps such as Photos, Safari, Messages, Mail and Shortcuts, making everyday tasks more personalized and efficient.
Further expanding its portfolio, Apple unveiled new AI-focused development tools to help developers build smarter, faster and more adaptive apps. Key updates include new intelligence frameworks, APIs for integrating AI models, enhanced app discoverability through Apple Intelligence and Siri AI and advanced agentic coding features in Xcode 27. The updated Xcode enables developers to leverage powerful AI models directly within their workflows, improving coding efficiency, testing and app refinement. Apple also introduced platform enhancements, which are designed to boost app performance, responsiveness and user experiences across its ecosystem.
Apple’s Prospects to Ride on Strong Services Business
Apple is benefiting from the rapid expansion and diversification of the Services business, which has become a key growth driver of the company’s performance. In the second quarter of fiscal 2026, Services contributed 27.9% of total net sales, with revenues rising 16.3% year over year to $30.98 billion, which was a record in Apple’s history.
The company continues to integrate new features and expand the breadth of its services. Apple recently introduced a range of AI-powered enhancements across its services, set to arrive with its 2027 software releases this fall. Key updates include richer Flyover views and Local Lists in Apple Maps, more flexible item-sharing in Find My and Apple Cash bill-splitting powered by Visual Intelligence.
Apple is also expanding video podcast support on Mac and tvOS, redesigning Shared Albums in iCloud and introducing a new Apple Fitness+ program. The updates aim to make Apple’s ecosystem more intelligent, personalized and collaborative while improving everyday experiences across navigation, payments, media, cloud storage and fitness services.
Apple’s Services business is on a strong upward trajectory, driven by ecosystem expansion, innovation and a focus on both consumer and enterprise needs. For the June quarter, management expects Services to grow at a similar year-over-year rate to the March quarter after removing the favorable impact from foreign exchange.
AAPL’s FY26 Earnings Estimate Revision Shows Rising Trend
Apple’s strong product demand, services growth and innovation in AI are expected to benefit the company’s top-line growth.
The Zacks Consensus Estimate for Apple’s fiscal 2026 earnings has increased by a penny to $8.75 per share over the past 30 days, indicating 17.29% growth from the figure reported in fiscal 2025.
The Zacks Consensus Estimate for Apple’s fiscal 2026 revenues is pegged at $478.10 billion, indicating 14.88% growth over the figure reported in fiscal 2025.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple Shares Are Overvalued
Apple shares are overvalued, as suggested by a Value Score of F. The stock is trading at a forward 12-month price/earnings (P/E) of 32.11X compared with the broader Zacks Computer & Technology sector’s 25.36X.
Apple shares are trading at a premium compared with peers, including HP, Microsoft and Amazon. Shares of Amazon, HP, and Microsoft are trading at a P/E multiple of 28.03, 32.03, and 20.52, respectively.
AAPL's Valuation
Image Source: Zacks Investment Research
Conclusion
Apple’s prospects are expected to benefit from its strong iPhone and Services business. Apple’s expanding AI footprint bodes well for long-term prospects. These factors justify the company’s premium valuation.
Apple stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.