Analysts Bullish on Apple and Take-Two Amid Market Highs

A recent report highlights bullish sentiments for Apple and Take-Two Interactive from analysts who predict significant revenue growth and impressive earnings per share increases, fueled by upcoming product launches and innovative strategies. Investors may want to consider these stocks as potential high performers.

Date: 06-10-2024

AI Rating: 7

The report emphasizes a continued bullish trend in the S&P 500, especially highlighting two key stocks: Apple and Take-Two Interactive. Both companies are forecasted to perform exceptionally well over the next few years, supported by strong upcoming catalysts.

Apple Analysis

Analysts expect strong performance from Apple due to its upcoming launch of 'Apple Intelligence.' This new feature is seen as a significant opportunity for growth, particularly in the services sector, which already constitutes more than 25% of Apple’s business and grew 14% year over year in the last quarter. The potential for AI-driven applications could drive substantial new revenue streams, which strengthens its long-term outlook.

Specifically, the report mentions that analysts expect earnings per share (EPS) to grow by 11% annually over the next five years. With the integration of AI capabilities, these predictions may be conservative if executed well. The focus on higher-margin service revenue suggests that Apple’s stock could see higher valuations in the near future.

Take-Two Interactive Analysis

On the other hand, Take-Two Interactive is preparing for a strategic release of several games, including a highly anticipated installment of Grand Theft Auto. The analyst estimates that Take-Two’s revenues could rise by 45% in fiscal 2026, driven by this new release and a robust pipeline of titles targeting established fan bases. This aligns with management’s optimistic projections for financial growth.

The report cites the expectation for Take-Two’s adjusted earnings per share to reach $9.05 by fiscal 2027, decades after the franchise’s last major release, indicating a significant opportunity for profit expansion. As Take-Two's operating profits are forecasted to triple in the coming years, the potential for stock price appreciation is strong.

In summary, both Apple and Take-Two Interactive appear to have lucrative potential for the coming years based on solid analytical expectations regarding their respective earnings, highlighting reasons for investors to acquire these stocks.

Stocks: AAPL TTWO