The Nasdaq-100 index climbed nearly 4% in July, increasing for the fifth consecutive month. The rise represents the longest period of monthly growth since August 2020. The index has soared 44% year to date, with Wall Street particularly bullish on booming markets such as artificial intelligence (AI).
The market's recovery from 2022's sell-off has many analysts excitedly calling it a bull market. As a result, now is an excellent time to consider investing in a reliable growth stock before it's too late, and it's hard to go wrong with Apple (AAPL 1.76%).
The company proved its resilience amid last year's economic downturn and has a long history of consistent growth. So, here are two reasons to buy Apple stock in a potential bull market.
1. It outperformed its competition amid macroeconomic headwinds
Rising inflation curbed consumer spending last year and continued to plague many tech companies at the start of 2023. According to Counterpoint Research, U.S. smartphone shipments fell 24% year over year in the second quarter of this year.
As a result, Samsung saw its market share decrease from 27% to 23% between the first and second quarters. The challenging conditions seem to affect phones run on Alphabet's Android the hardest.
However, the same period proved the dominance of Apple's iPhone as the company's smartphone market share grew from 52% to 55%.
The company performed similarly well in personal computing (PC) this year. Data from IDC shows PC shipments tumbled 13% in the second quarter. Companies such as Lenovo and Dell experienced shipment declines of 18% and 22%, respectively. Meanwhile, Apple's Mac lineup enjoyed a 10% rise in sales.
Apple has attracted millions of consumers with its focus on quality and the ease of use with its operating system. Its product strategy allows the company to charge a premium for its devices, making it less vulnerable amid macroeconomic hurdles than the competition is.
2. Apple has a lucrative future in multiple markets
In addition to consistent product sales, Apple has a reputation for offering investors reliable long-term growth. The chart below shows how its stock has provided significantly more gains since 2018 than any of the other top-five tech companies.
Data by YCharts.
This success is mainly driven by its immense dominance across consumer tech. Apple holds a leading market share in the majority of its product categories, such as smartphones, tablets, headphones, and smartwatches. This allegiance from consumers has bolstered its position in nearly every new market the company has entered.
For instance, in 2019, Apple made a massive push into digital services after previously seeing success in its Music application. The year saw the company launch digital platforms Apple TV+, Fitness+, News+, and Arcade.
The expansion led Apple's services business to become its second highest-earning segment after the iPhone. And in fiscal 2022, the services business reported revenue growth of 14%, double that of the iPhone.
Apple's popularity among consumers bodes well for its growing ventures into virtual/augmented reality (VR/AR) and artificial intelligence. In June, the company unveiled its highly anticipated VR/AR headset, the Vision Pro, entering a market projected to hit $227 billion by 2029 with a compound annual growth rate of 45%.
The new device will launch at an expensive price point, starting at $3,499. But Apple's past pricing strategies suggest the cost will likely come down with the device's future generations. Its powerful brand gives the company a better chance than most at leading the lucrative industry over the long term.
Apple has a long history of offering investors consistent stock growth. Meanwhile, its performance in a challenging economy proves the resilience of its business. So if a bull market is here, the stock is a no-brainer before it rises any higher.
