Apple Stock Valuation Raises Profit-Taking Concerns

Apple's stock performance has been impressive in Fiscal 2026, driven by accelerating revenue growth after years of low-single-digit expansion. The company's Q3 2026 earnings per share (EPS) of $2.02 included a one-off tariff refund benefit, which boosted profits.

Former CEO Tim Cook noted that Apple had its strongest June quarter ever, with double-digit revenue growth across iPhone, Mac, and Services in every geographic segment. The company's new products, such as the iPhone Duo, are expected to continue driving topline momentum for Apple.

However, analysts expect EPS growth to moderate in 2027 due to high memory costs and the non-recurrence of tariff refunds. As a result, Apple's stock is trading at a relatively high valuation multiple of 35.35x expected 2027 earnings, which may present a profit-taking opportunity.