Why Investors Should Consider Buying Apple Stock Ahead of Its September iPhone Event

Apple (AAPL) is heading into a potentially important September, with the iPhone 18 Pro and iPhone Ultra expected to be unveiled. Reports also point to new Apple Watch models, while updates to Apple TV and HomePod remain less certain. Apple has not yet confirmed the event or product lineup.

KeyBanc’s latest monthly carrier survey showed indexed spending rising 9% month over month, compared with a three-year seasonal average of 2%. However, analyst Brandon Nispel described the result as “relatively neutral,” arguing that it partly reflects a rebound from unusually weak prior months and purchases pulled forward ahead of the iPhone launch.

KeyBanc maintains a $250 price target and an “Underweight” rating on AAPL stock. Its concern is that higher iPhone prices could eventually restrain unit demand, user growth, and Services growth, while Apple’s premium valuation leaves the stock vulnerable to a decline in its valuation multiple.

Even so, the launch could surprise investors if demand, pricing, or the foldable iPhone exceed expectations. However, the carrier data alone does not establish that outcome. 

About Apple Stock

Once a hardware maker, the Cupertino, California-based Apple now runs an enormous consumer technology ecosystem around the iPhone, Mac, iPad, wearables, services, custom silicon, and several other products that keep customers within its orbit.

With a market cap of $4.5 trillion, Apple has built a recurring revenue engine that keeps getting stronger as its Services business expands. The App Store, iCloud, and Apple Music provide much of the muscle behind that segment, giving Apple dependable revenue streams that complement its blockbuster hardware business.

Apple's stock performance has followed the company's ability to deliver consistent revenue growth and strong customer loyalty. These ingredients have helped the stock gain 32.2% over the last 52 weeks. Year-to-date (YTD), shares have climbed 12.6%, reflecting investor interest despite its already lofty valuation.

On that note, AAPL stock is currently trading at 34.77 times forward adjusted price-to-earnings and 9.35 times sales. Both figures sit well ahead of the industry averages and their own five-year historical multiples, suggesting a rich premium.

Moreover, the consumer electronics giant has grown its dividend for 13 consecutive years, paying out an annual dividend of $1.08 per share at a yield of 0.35%. The company paid its most recent dividend of $0.27 per share on Aug. 13 to shareholders on record as of Aug. 10. 

Apple Surpasses Q3 Earnings

Apple released its Q3 FY2026 earnings on July 30 and closed the quarter with revenue of $109.4 billion, up 16.4% year-over-year (YOY) and ahead of the $108.65 billion Wall Street expected. Adjusted EPS reached $1.91 against the $1.89 Street’s estimate.

iPhone revenue jumped 21.7% YOY to $54.3 billion, driven by demand for the iPhone 17 lineup and market share gains. Mac surprised investors by reaching $10.4 billion against an $8.74 billion forecast, adding another welcome boost to an already strong quarter.

Services revenue rose to $30.7 billion from $27.4 billion in the last year’s quarter, although the segment missed the $31.22 billion estimate. iPad remained the outlier, with revenue slipping to $6.2 billion from $6.6 billion. Gross margin climbed to $54.8 billion from $43.7 billion, producing a 50.1% rate.

Tariff refunds helped support those margins, while operating income rose to $35.7 billion from $28.2 billion in the prior year’s period and net income increased to $29.8 billion from $23.4 billion. Despite the impressive quarter, Apple’s shares fell 7.35% in the following trading session as management's current-quarter outlook rattled investors.

Management guided for Q4 revenue growth of just 9% to 11%, a slowdown from June's 16% pace, with a 2.5-point FX headwind and supply constraints affecting iPhone, Mac, and iPad. Apple expects a gross margin of 47% to 48%, with rising memory costs offsetting one point of tariff refund benefit.

On the other hand, analysts expect Q4 FY2026 EPS to grow 7% YOY to $1.98. Full-year FY2026 EPS estimates sit at $8.76, implying 17.4% annual growth, while FY2027 estimates reach $9.52, adding another 8.7% growth. 

What Do Analysts Expect for Apple Stock?

Despite the headwinds, analysts are optimistic on AAPL’s outlook. Bank of America's Wamsi Mohan reiterated a “Buy” rating on Apple and maintained a $380 price target, signaling continued confidence in the company's ability to keep delivering.

The broader analyst community also leans bullish, assigning AAPL stock an overall "Moderate Buy" rating. Among 41 analysts covering the name, 20 analysts rate Apple a "Strong Buy," three give it a "Moderate Buy," 14 remain at "Hold," two issue a "Moderate Sell," while two analysts suggest a "Strong Sell" rating.

To that end, the average price target of $322.63 represents potential upside of 5.5%. Meanwhile, the Street-High target of $400 suggests a gain of 30.8% from current levels.