Why Apple stock can keep delivering for shareholders

Apple stock’s price-to-earnings ratio has come down significantly recently, but all the while, the company’s capital-return program has been incredibly successful, creating significant shareholder value.

Daniel Sparks for The Motley Fool:

Shares of tech-giant Apple have a long track record of rewarding investors. In fact, the stock has outperformed the S&P 500 by a wide margin over the last 10-, five-, three-, and one-year periods.
A close look at the stock and, more importantly, the underlying business suggests there’s likely more meaningful growth to come for Apple shareholders. Here are four reasons there’s a high probability of Apple stock performing well over the next decade.
1. Apple boasts a powerful “engine” of loyal users
2. The tech giant is more focused than its megacap peers
3. Apple manages its capital prudently
4. The stock’s valuation is attractive
Trading at just 23 times earnings at the time of this writing, Apple stock is cheaper on a price-to-earnings basis than both Proctor & Gamble and McDonald’s. For a company with a highly focused business, a loyal customer base, and a long history of exceptional capital allocation, this valuation is approaching bargain territory.

MacDailyNews Take: As always, Apple remains laughably undervalued with the average price target among 41 analysts sitting at $178.15, itself ridiculously low.
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