Is AAPL a good stock to buy now? We came across a bullish thesis on Apple Inc. on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on AAPL. Apple Inc.’s share was trading at $260.83 as of March 10th. AAPL’s trailing and forward P/E were 32.90 and 30.40 respectively according to Yahoo Finance.
brandon-romanchuk-NOFyRmSQfUQ-unsplash
Apple Inc. is a large-cap technology company operating in the hardware, peripherals, and digital services industry, widely recognized for its integrated ecosystem of devices and software. Founded in 1976 and headquartered in Cupertino, California, the company designs and sells smartphones, computers, tablets, wearables, and accessories while also distributing applications through its App Store and selling products via retail stores, online platforms, direct channels, and third-party resellers. Apple serves a broad customer base that includes consumers, small and mid-sized businesses, as well as education, nonprofit, and government institutions.
The company’s competitive advantage is widely considered strong, supported by high switching costs, powerful intangible assets, and network effects created by its tightly integrated iOS ecosystem. Its seamless hardware-software integration, strong design capabilities, and extensive developer network reinforce customer loyalty and enable the company to sustain premium pricing and strong profitability over long periods. Apple’s financial performance further strengthens the bullish investment case. Although revenue growth has been in the high single digits over the past five years and recently trailed broader market growth, the company maintains exceptionally high profitability, with net margins in the high double digits.
Management’s capital allocation has also been remarkable, highlighted by more than $700 billion in share repurchases over the past decade, reducing outstanding shares by roughly 35%, including nearly $100 billion repurchased in the 12 months ending September 2025.
These buybacks, combined with strong profitability, have produced extraordinary returns on equity and invested capital that significantly exceed both internal targets and broader market averages. Despite flat free cash flow growth in recent periods, Apple continues to generate close to $100 billion in annual free cash flow, supporting robust earnings growth and dividends, reinforcing its position as a highly profitable and shareholder-focused technology leader.
Previously, we covered a bullish thesis on Apple Inc. (AAPL) by Kontra in October 2024, which highlighted the company’s dominant smartphone profit share, sticky ecosystem, stable iPhone replacement cycles, and expanding services and wearables supporting margins. AAPL’s stock price has appreciated by approximately 11% since our coverage. David J. Waldron shares a similar view but emphasizes Apple’s strong capital returns and exceptional returns on invested capital.
Apple Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 169 hedge fund portfolios held AAPL at the end of the fourth quarter which was 166 in the previous quarter. While we acknowledge the risk and potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW
Disclosure: None.
