Is Apple Stock a Buy, Sell, or Hold After Launching its iPhone 16e?

Apple (AAPL) shares climbed almost 2% on Feb. 13 after CEO Tim Cook set the tech world abuzz with a cryptic teaser on X. “Get ready to meet the newest member of the family,” Cook wrote in the post. “Wednesday, February 19.” With speculation running wild, many expected a new iPhone SE priced around $499. But in a surprising twist, Apple unveiled the iPhone 16e instead, the latest addition to the iPhone 16 family. While the iPhone 16e comes with a higher price tag than the SE model, the extra investment brings serious upgrades.

Apple has packed in a more powerful camera system, Apple Intelligence, a design inspired by the sleek iPhone 14, and a sharper, more vibrant display. The real standout, however, is the battery, delivering impressive longevity thanks to the industry-leading efficiency of the A18 chip and Apple’s first-ever in-house cellular modem, the Apple C1. With nearly double the capacity of its predecessor, the iPhone 16e offers significantly longer usage times, keeping consumers powered up throughout the day without the constant need to recharge. 

So, with this latest iPhone 16 model soon hitting the shelves, should investors load up on AAPL shares now?

About Apple Stock

Apple (AAPL) is a true titan in the tech world, headquartered in Cupertino, California, with an astounding market cap of nearly $3.7 trillion. While the iPhone remains its crown jewel, Apple’s Services segment has quietly become the real revenue powerhouse. From cloud services and the App Store to Apple Music, AppleCare, and Apple Pay, this portfolio generates consistent, high-margin earnings.

The company has also solidified its dominance in Wearables and Hearables, thanks to the widespread adoption of the Apple Watch and AirPods. This success is reflected in AAPL’s stock performance, which has surged 35% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 22.7% gain and the tech-heavy Nasdaq Composite’s ($NASX) 27.1% rise.

Priced at 33.6 times forward earnings and 9.39 times sales, AAPL is trading well above sector averages of of 25.71x and 3.39x, respectively, highlighting the market’s conviction in the company’s growth story.

With a respectable 13-year track record of consecutive dividend hikes, the tech giant appears committed to rewarding its investors. Last week, on Feb. 13, Apple paid out its fourth quarterly dividend per share of $0.25. On an annualized basis, Apple dishes out $1.00 per share, offering investors a 0.41% yield.

Apple Surpasses Q1 Earnings Projections

Apple’s first-quarter 2025 financial results, released on Jan. 30, revealed yet another record-breaking performance. The company reported revenue of $124.3 billion for the December quarter, marking a 4% year-over-year increase and setting an all-time high. The reported top-line figure also narrowly edged past Wall Street’s forecast figure of $124 billion.

Products revenue climbed to $98 billion, rising 2% from the prior-year period. Services revenue surged to a record $26.3 billion, reflecting a 14% increase. The company’s gross margin stood at 46.9%, at the higher end of its guidance range, improving by 70 basis points sequentially due to a favorable product mix. Operating cash flow was $29.9 billion.

Apple also set new all-time records for net income, reaching $36.3 billion, and for diluted earnings per share, which climbed 10% year over year to $2.40, surpassing Wall Street’s estimate of $2.36.

Looking ahead, Apple expects March quarter revenue to grow in the low to mid-single digits year over year, while Services revenue is anticipated to see low double-digit growth. Gross margin guidance is set between 46.5% and 47.5%.

Analysts tracking Apple predict its fiscal 2025 first-quarter EPS to reach approximately $1.61, reflecting a 5.2% year-over-year increase. For the full year, EPS is projected to grow 7.9% from the prior year to $7.28.

What Do Analysts Expect for Apple Stock?

Recently, Goldman Sachs Group reiterated its “Buy” rating on AAPL, citing optimism about upcoming product launches. Despite investor concerns over Apple Intelligence, China’s competitive landscape, and the smartphone upgrade cycle, it believes new releases will drive demand.

Among 37 analysts covering AAPL, 17 advocate a “Strong Buy,” while five recommend a “Moderate Buy.” Meanwhile, 11 suggest a “Hold,” one calls for a “Moderate Sell,” and three advise a “Strong Sell.” The consensus stands at a “Moderate Buy.” AAPL’s average analyst price target of $250.35 represents potential upside of 2.2%, while the Street-high target of $325 suggests that the stock can climb as much as 32.7% from here.

On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.