12 Best Quality Stocks to Invest in Now

6. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

As per Bloomberg, Apple Inc. (NASDAQ:AAPL) has been readying itself for a significant update to its operating systems, utilized in the devices including iOS for iPhones, macOS for Macs, and iPadOS for iPads. This is expected to be rolled out later this year. Notably, the redesign focuses on changing the interface and functionality of its systems in a bid to meet the requirements of new generations of users. As a result of this move, Apple Inc. (NASDAQ:AAPL) targets boosting demand for the devices after a period of slower sales. Also, the company’s AI initiatives are expected to fuel strong future growth and market share gains.

Through the integration of advanced AI features in the devices and services, Apple Inc. (NASDAQ:AAPL) is expected to enhance user experiences throughout its product lineup, resulting in the series of upgrades and attracting new customers to its ecosystem. The company’s strong emphasis on on-device AI processing remains in line with the emphasis on privacy and security, which can be appealing to privacy-conscious consumers and enterprises.

Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:

“We continue to be concerned about the overall valuation of the market and have maintained a lower-than-average net market exposure. In fact, our daily correlation to the S&P 500 last year was 0.01. Cyclically and interest rate adjusted valuations are as high as we can remember.

A look at a prior favorite company of ours, Apple Inc. (NASDAQ:AAPL), shows that the stock at times sported a single digit P/E ratio and achieved 19.2% compounded revenue growth during the eight years we owned it. The last couple of years AAPL has had no revenue growth, but the P/E multiple has expanded from 22x to 37x. In this environment, we can’t say the multiple won’t expand to 45x a year from now. It might. But we don’t see why it should or what the investment appeal is at this valuation.”