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Apple (AAPL) stock investors have had a turbulent year. A recent story on MarketWatch highlighted how the share price dropped by around 30% earlier in the year due to concerns over the consequences of the tariffs and questions about the company’s ability to remain competitive in the artificial intelligence (AI) space. However, the recent launch of the iPhone 17 appears to have created a shift in popularity. The stock is up nearly 8% for the year as of Oct. 27.

GOBankingRates consulted with investing experts to determine whether buying Apple stock is a no-brainer or whether you should remain cautious about investing in the company.

Jose Mayora, an emerging fund manager and author, noted that there’s no such thing as a “no-brainer” stock.

He believes that if you start at the stock’s current valuation and work backward to consider the assumptions about growth, margins and reinvestment, investors can determine whether Apple, or any stock, is offering a reasonable expected return based on its fundamentals.

That being said, Mayora shared the following analysis of the Apple stock.

“Apple’s current P/E ratio of nearly 40x sets a high bar for both growth and reinvestment returns that are unlikely to be met. At this valuation, the market is effectively assuming Apple can sustain a cash flow growth of north of 15% over the next decade and/or consistently reinvest at returns above 25%. Given its massive scale, market share saturation, intensifying competition in its second-largest market (China), lag in AI capabilities, and exposure to the classic innovator’s dilemma, those assumptions look unrealistic,” he said.

Other experts are eyeing Apple’s growth. “Despite murmurings of early success for the new iPhone models, consensus estimates call for top-line growth of roughly 4% for the iPhone segment in fiscal 2026,” said Dave Novosel, CFA, a senior bond analyst for Gimme Credit. “That would be lower than the pace likely to be registered for fiscal 2025, which ends this month.” 

Mayora concluded that the stock may present short-term trading opportunities, but from a long-term investor’s perspective, it’s far from a no-brainer. Despite that, there are also many positive factors with this stock that are encouraging to investors.

Novosel also noted that the significant growth in the services segment could bolster overall growth. According to Apple’s most recent earnings report, the services business grew to $27.42 billion for the quarter, representing an annual increase of 13%. This business segment includes Apple’s warranties, content subscriptions, licensing deals with Google and App Store revenue, per CNBC. 

Preston Brown, CEO and founder of Yeeld, noted that it’s easy to see why Apple has long been a favorite for investors. “The brand’s strength, loyal customer base and track record of innovation are tough to beat,” he said. He emphasized that the various revenue streams from hardware, apps, payments and subscriptions can potentially increase shareholder value. 

“Beyond its current operations, Apple’s strong cash position, global reach and ongoing investment in emerging technologies, from AR to health and financial services. Apple has shown it can handle short-term bumps while still building for the long run, but it’s one piece of the bigger picture rather than a one-size-fits-all solution,” Brown said.

The experts agreed that Apple has a promising future despite a turbulent start to the year, but it’s not a guaranteed investment to make. 

When deciding whether you should invest in any individual stock, you have to factor in today’s environment of tariffs, inflation and shifting consumer behavior. Brown pointed out that no company is entirely immune to external pressures, and unexpected challenges can always arise. “Trade tensions, tariffs and inflation can all impact supply chains and margins, which investors need to keep in mind,” he said.

“Given that many price points remain the same, it’s possible that Apple is eating some of the tariff increases, which implies some margin pressure,” Novosel said.

During the last earnings call, Apple CEO Tim Cook noted that the company incurred $800 million in tariff costs for the June quarter and that this figure could rise to $1.1 billion for the September quarter. This could hurt margins and have a significant impact on the business moving forward. 

J.P. Morgan analyst Samik Chatterjee is feeling optimistic about the future of Apple’s stock and recommended buying shares, per TipRanks. He raised his price target from $255 to $280 due to strong demand for the iPhone 17, a potential foldable iPhone to be introduced next year, an improved tariff climate and the growth of the services business.

In another positive note about the future of Apple’s stock, Evercore raised its price target to $290 due to a stronger-than-expected upgrade cycle, per GuruFocus.

While many analysts are currently bullish on Apple’s future, it doesn’t mean investing in the stock is a no-brainer. As always, you should consider speaking with a financial advisor before making investment decisions because you may be better off diversifying your portfolio instead of taking a considerable risk on one tech giant. 

“For someone who hasn’t bought Apple yet, it’s not a guaranteed ‘no-brainer.’ However, it’s a company that has proven its staying power and has a strong brand in the industry,” Brown said.