Apple (AAPL -1.00%) stock has become more expensive in 2021, but is it too late to buy shares?
In this video from "Beat & Raise" on Motley Fool Live, recorded on Oct. 6, Fool.com contributors Demitri Kalogeropoulos and Rachel Warren share their perspectives about establishing a position in the tech giant. Fool contributor Brian Withers is also in the clip.
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Demitri Kalogeropoulos: "If one does not own Apple, is it a buy at the current price, would you take a position in Apple or deploy limited capital somewhere else?"
I could spend a whole hour on that question,[laughs] but the highlight on it is, Apple definitely is expensive, it's gotten more expensive over the last year.
It's up a lot, I'm just looking at the price to sales ratio like evaluation, it's up around that seven times. Sales and it used to be before the pandemic, it was usually in that four times sales categories.
The valuation has expanded, as well as the stock price, but it is one of the most attractive businesses I can think of in terms it's growth potential, it's earnings potential, it's margin potential its brand, the value of its innovation.
Just the things that's going to be releasing over the next 10 years or so. I wouldn't say buy at any price, but it's close to that.
It's one of the closest ones I can think of just off top of my head, that would be that recommendation, but then one last thing I'll say is that you also be worthy, probably own Apple anyway, because if you own any index funds or you own any, Apple's the biggest company on there.
Be careful in terms of like getting too much exposure to Apple because you probably have it through, all 401K. If you own any of the stock market, you own a bit of Apple anyway.
Brian Withers: Great response to [inaudible 03:55:47] question. Rachel, I was going to kick it over to you because, you just recently bought Apple as one of your first stocks?
Rachel Warren: Absolutely. [laughs]
When I bought my first 10 stocks, Apple was probably one of the easiest pick on my list. Again, it just unchallenged brand authority that continues to expand its ability to grow in existing in new markets.
It is one of those stocks I agree. I think that you have to obviously look at share price and you're looking at a stock price, I think it's easy to get too caught up in share price sometimes, because sometimes really quality companies investors love them, they buy more shares that impacts that stock goes up and have to pay a premium for it. That's for fractional investing is great too.
I think Apple is a great stock pretty much for any investor any risk tolerance profile. I think it has a lot to offer and it has a really diversified business, which is really nice too.