Apple at $310 Still a Buy Despite Valuation Concerns

Apple's stock price has pulled back from its 52-week high of $344.27, but at $310.34 it remains a buy on a risk-adjusted basis. The company's installed base of over 2.5 billion active devices and services engine generating over $30 billion per quarter make it an attractive investment opportunity.

The iPhone 17 cycle is running hotter than expected, with iPhone revenue reaching $54.3 billion, up 22% year over year. Mac revenue grew 29%, and Services set records in every category.

Valuation is a concern, with Apple trading at 35x trailing earnings and 32x forward earnings, well above its historical average. However, the company's strong capital returns, including a $33 billion share-repurchase program, provide a solid foundation for growth.