Apple: Sell Before Q3

Apple remains rated Sell, as its valuation is highly stretched despite recent momentum and new product initiatives. Key watchpoints for Q3 include gross margin resilience amid rising memory costs, service segment growth, and the impact of recent price hikes. Tim Cook's final earnings call and the CEO transition to John Ternus introduce additional uncertainty around capital allocation and strategic continuity. AAPL trades at a P/E of nearly 40, outpacing faster-growing peers, with a free cash flow yield at a decade low of 2.7%.

It has been a while since I last covered Apple Inc. (AAPL), and it has gained about 20% since my last Sell rating, and it (nearly) reclaimed the crown of the most valuable publicly listed company in the world.