We recently published a list of Top 10 Stocks to Buy According to Sustainable Insight Capital Management. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other top stocks to buy according to sustainable insight capital management.
Sustainable Insight Capital Management (SICM) focuses on institutional investments, offering both long-only and long-short strategies in public equities. Established by an experienced leadership team with deep institutional knowledge, the hedge fund is committed to providing investment solutions that emphasize sustainability. As of the fourth quarter of 2024, SICM reported managing nearly $228.52 million in 13F securities, with its top 10 holdings making up 56.36% of its portfolio.
Kevin Edward Parker is the founder and Chief Executive Officer of Sustainable Insight Capital Management LLC, which he established in 2013. He also founded Sustainable Insight Capital Management (UK) Ltd. that same year and serves as its CEO as well. Parker earned his undergraduate degree from New York University in 1981. With over 30 years of experience on Wall Street, he has built a distinguished career in investment management and financial leadership. Before launching SICM, Kevin Parker played a key role at Deutsche Bank, where he was a member of the Group Executive Committee from 2001 to 2004 and led its asset management division as Global Head from 2004 to 2012. His extensive expertise in sustainable investing and institutional asset management has positioned SICM as a leader in responsible investment strategies.
Beyond his work at SICM, Parker holds several leadership positions in various organizations. Since 2004, he has also served as Vice Chairman of the New York Police & Fire Widow’s & Children’s Benefit Fund. Additionally, he has been an Independent Director at The Westaim Corporation since 2020, an Independent Non-Executive Director at United Co. RUSAL International PJSC since 2019, and a Director at both Next Jump, Inc. and Westaim Arena Holdings II LLC since 2016. His previous roles include Chairman of the Management Board at DWS International GmbH from 2011 to 2012 and a Director at the Sustainability Accounting Standards Board from 2014 to 2018. He has also held leadership positions at Agri. Capital Group SA, DB Climate Change Advisors, and Green Partners Technology Holdings GmbH.
Our Methodology
The stocks discussed below were picked from Sustainable Insight Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of Sustainable Insight Capital Management’s stake in them as of the fourth quarter of 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
SICM’s Equity Stake: $17.74 Million
Apple Inc. (NASDAQ:AAPL) ranks 1st on the list of the top 10 stocks to buy according to Sustainable Insight Capital Management. The company, based in Cupertino, California, is a global technology leader known for its innovative consumer electronics, software, and services. In addition to a wide range of products, Apple also offers services such as Apple Pay, iCloud, and Apple Music, solidifying its position as one of the world’s most valuable tech companies.
In the quarter ending December 2024, Apple Inc. (NASDAQ:AAPL) reported $124.3 billion in revenue, a 3.95% year-over-year increase, slightly exceeding analyst expectations. Earnings per share (EPS) rose to $2.40, up $0.22 from the previous year. On January 30, 2025, the company’s Board of Directors declared a quarterly dividend of $0.25 per share, payable on February 13, 2025.
The share price of Apple Inc. (NASDAQ:AAPL) climbed following the company’s stronger-than-expected earnings report, driven by increased iPhone upgrades for AI-powered features. Despite a decline in iPhone sales during the December quarter, partly due to regulatory challenges in China and the gradual global rollout of Apple Intelligence, Apple’s overall profit exceeded forecasts, thanks to strong growth in its services division. CEO Tim Cook highlighted that iPhone upgrades reached a record high last quarter and expects Apple Intelligence to gain widespread adoption as iPhone 15 and 16 sales grow. In April, Apple Intelligence will expand to additional languages, broadening its reach. Apple’s stock has risen 30% over the past year, outperforming the broader market. Given Apple’s strong financial position, increasing adoption of AI-driven products, and expanding services segment, it remains a top stock to buy, offering long-term growth potential and market stability.
Tsai Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter. It stated:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
Overall, AAPL ranks 1st on our list of top stocks to buy according to sustainable insight capital management. While we acknowledge the potential for 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.