5 Best Forever Stocks to Buy Now

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) is a California-based tech giant that has emerged as the biggest publicly listed company in the US.

Apple Inc.’s (NASDAQ:AAPL) current stock price of $140 represents that the stock is trading close to 20x its forward PE ratio. Given the company has a 100% return on capital employed (ROCE), this is an attractive valuation. The company is also transitioning from being a provider of hardware to a provider of subscription services through its various platforms. Since the start of this year, Apple Inc. (NASDAQ:AAPL) has added over 30 million paid subscribers to its various platforms. The revenue growth of the subscription business is faster than the overall revenue growth of Apple Inc. (NASDAQ:AAPL). Analysts term Apple Inc. (NASDAQ:AAPL) as one of the best long-term stocks due to the company’s proven record of consistent growth and strong operations.

Apple Inc. (NASDAQ:AAPL) was discussed in the Q2 2022 investor letter of Wedgewood Partners. Here’s what the investment management firm said:

“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.^[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.