AAPL

Apple is a phenomenal company, but their enormous size will be a barrier to market-beating returns. Read more about AAPL stock here.

Disclosure: I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. Share repurchases have been a foundation of Apple's annual EPS growth and I fully expect this to continue in the future. In the current macro environment of rising interest rates, sky-high inflation, and a looming recession, investing anywhere is risky. I assumed Apple will continue reducing total number of shares outstanding by 2.5% annually and grow FCF by 7.4% annually (below the 10 YR CAGR of 10.8%). Investors looking to 5x their money in the next 5 to 10 years likely won't be able to do so owning Apple. It's simply too large a snowball. Using the market multiple approach, I arrive at a 2026 target price of $197 for Apple, which includes share repurchases but excludes dividends. Apple has numerous products and services of which I am a satisfied customer. Prior to 2021, share repurchases often accounted for a significant portion of EPS growth. To put it in perspective, Apple is the size of 25 PayPal's ( PYPL). It takes an enormous amount of money to move Apple, whether that be revenue, earnings, or investors. There's no denying the incredible success of Apple (NASDAQ: AAPL) as a company and as an investment. Just as important a question, how far outside the park must Apple hit these homeruns to have a meaningful impact on revenue and earnings? But, as many of us know, the larger a snowball gets the harder it is to roll, to the point where it's so large it can't be rolled at all.