As earnings season apaches, investors should review their portfolios and assess whether there is still upside left or if the next piece of news could be negative. This could apply to Apple (AAPL 0.
46%), as investors have been fairly bearish on the stock for a good reason.
While the rest of the market has rallied from its lows in April and May, Apple's stock has remained relatively flat, down 15% for the year at the time of this writing.
I think this lack of participation isn't a buying opportunity; it's a sign of things to come. As a result, it may be a good idea to unload s before Apple's next quarterly earnings report on July 31.
In contrast, Image source: Getty Images. Apple has failed to be an innovator lately Apple needs little introduction; it's the leading consumer nology brand and millions around the globe own its ducts.
Meanwhile, However, there's only a limited population, and Apple may have neared the saturation point for its duct line.
Furthermore, Apple has failed to release any real game-changing features in recent years (something worth watching), in light of current trends.
It wasn't all that long ago when consumers would purchase a new iPhone each year for all of the new upgrades. Now, it's only incremental battery life and camera upgrades, with little true innovation.
On the other hand, On the AI front, Apple has been left behind by its Android peers, as Apple Intelligence, its take on AI, hasn't dered anything noteworthy.
The data indicates that 's a telltale sign of a company that's relying on its prior success, and it's evident in Apple's financials.
However, Apple's growth has been very slow recently Apple's revenue growth has been poor over the past few years (an important development) (which is quite significant).
AAPL Operating Revenue (Quarterly YoY Growth) data by YCharts With Apple's 5, in this volatile climate.
Meanwhile, 1% increase last quarter looking a huge imvement from prior quarters, that's not a great position to be in.
However, for a mature company Apple, investors care more earnings per (EPS) growth than revenue growth, amid market uncertainty.
Apple can repurchase s and imve margins to squeeze out faster earnings growth than revenue growth, but those days may be limited as well.
Nevertheless, However, AAPL EPS Basic (Quarterly YoY Growth) data by YCharts Apple has repeatedly dered quarters with less than a 10% EPS growth rate, which suggests it may underperform the market over the long term, given the market's long-term average growth rate of around 10%.
Despite Apple continuously dering slower-than-average growth, its stock trades at a hefty premium to the market (something worth watching).
AAPL PE Ratio (Forward) data by YCharts Although Apple's valuation has come down, its 29. 4 times forward earnings is still far more expensive than the S&P 500's 23.
7 times forward earnings, amid market uncertainty.
At the same time, This suggests that the market is overpaying for Apple's stock, and its third-quarter fiscal year 2025 earnings announcement on July 31 could serve as another wake-up call for investors (something worth watching).
There wasn't much that happened in the quarter that could have boosted Apple's sales, and with tariffs ly squeezing its margins, the odds of the stock moving lower are far more ly than it moving higher.
Investors should consider moving on from Apple stock.
It has been on a great run and duced phenomenal returns, but there are many other stocks with stronger growth that look better places to be invested in right now (quite telling) (an important development).
Keithen Drury has no position in any of the stocks mentioned (this bears monitoring), considering recent developments. Additionally, The Motley Fool has positions in and recommends Apple.
The Motley Fool has a disclosure policy.