To Apple Or Not To Apple? That Is The Investing Question

There’s no denying that Apple (APPL) is a company that stirs up strong emotions in people, polarizing most consumes into two groups: those who are brand-loyal to Apple products and strongly against buying them. There’s also denying that Apple is one of the most successful companies in the world and a choice stock for investors. Quite a lot of Apple’s stock performance is related to and influenced by the release of popular products such as the iPod, iPhone, and iPad.

A huge contributor to their success is their CEO, Steve Jobs. Their stocks have jumped since he as returned to the company. A company called StockFront now has a tool to helps investors understand the products that makes Apple’s stock move.

As a matter of fact, there are about a dozen drivers that affect the performance of all stocks traded on the market. StockFront has introduced a new tool to help investor’s discover and dissect these drivers and their overall effect on the investor’s portfolio.

Size is a major factor driving Apple’s stock price. Apple’s market capitalization is substantially above average. When investors are seeking the security of quality, established companies, they are likely to buy stock in a larger than average company, such as Apple.

Another factor is growth, which measures how quickly or slowly a company’s earnings grow. Apple’s stock is considered high growth, earning more money faster than most companies. Apple is also one of the most commonly traded stocks on the market.

Unfortunately, this high trading volume means that Apple’s stock price is more heavily influenced by passing sentiment than by the company’s actual results Those interested in investing in Apple should take notice of driver exposures related to size, growth, and trading volume, as they can have a serious effect on stock price and performance.

Using a tool like StockFront offers insight to better understand what is causing a stocks increase. Understanding this helps investors to make wise decisions to improve their portfolio performance by choosing stocks that help neutralize the influence on the performance of some stocks.

Before you buy Apple stock – or any other other company’s – first look at what drivers affect the stock price and it’s movement in the market.

Stockfront has released a suite of tools previously only available to sophisticated hedge fund investors. Stock buying research, tips, recommendations, and more – all instantly updated!