Financial Research Report Paper Example | Topics and Well Written Essays - 2750 words

Financial Report - Research Paper Example Apple, Inc. is the second-largest information technology corporation in the world by revenue after Samsung Electronics and also the third-largest mobile phone maker in the world (Ximà ©nez, & Sanz, 2014) As the financial manager, I have made the decision to recommend to my investor that he/she invest heavily in the stock of the Apple Inc. There are a number of reasons behind my decision for the investor to consider investing in Apple. First, Apple is the best investment option owing to the fact that by the end of 2012, according to Bernstein analyst, Toni Sacconaghi (2012), the company alone was responsible for 17% of the gains of the whole Standard and Poor’s Five hundred. Secondly, Apple’s long-term performance over the last ten years has been outstanding. Since 2002, the company’s stock soared 7,800% compared to S&P Five hundred (Birger, 2013). In my opinion, this performance/strength over the past ten years proves that the stock of Apple Inc. is a reliable investment at present and in the future. Additionally, while in the previous periods Apple has been considered specifically as the growth stock company, presently I would consider Apple as not only the gro wth stock company but also the value play company. The reason behind my consideration is that according to Birger (2013), the company experienced â€Å"66% growth in earnings in the past four quarters, a 1.8% dividend yield as well as a price/earnings ratio of 13.3 , which is lower than S&P 500’s 16 P/E† in 2012. All of the aforementioned reasons indicate that even though the company’s stock has significantly dropped by almost 33% since the company’s historic high of $ 700 (September 18th, 2012), Apple is still a strong investment option for the investor (Rich, 2013). Additionally, in August 2013, Carl Icahn (American businessman) invested quite a large amount shares in Apple saying that he thinks the shares are extremely undervalued. Lastly, Apple is famous for its excellent innovation. For