Shares of tech giant Apple (NASDAQ:AAPL) were up over 7% today after it announced a strong quarter. The highlight of the report was the iPhone, which saw unit sales of over 44 million compared to estimates of around 38 million. The company also increased its capital return program from $100 billion to $130 billion, most of which will be in the form of a share repurchase program.
But where will sales of the iPhone go from here? On today's Stock of the Day, Motley Fool analyst Evan Niu thinks the future looks bright for Apple's hit product. The iPhone 6 will be released later this year, and he thinks that will help the company capitalize on the growing trend of larger phones. Meanwhile, Apple continues to see great success in emerging markets with the sale of its iPhone 4S, which as Evan notes is now three years old, indicating the strength of the Apple brand.
So should investors get in on the action? Overall, Evan is a perma-bull on the company, and Apple itself is confident in its future given the increasing share repurchase program. The case can be made that the company is reasonably valued, and with a strong quarter in its back pocket now may be a good time to invest.
Evan Niu, CFA owns shares of Apple and has the following options: long January 2015 $460 calls on Apple and short January 2015 $480 calls on Apple. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.