Stocks to Watch: Apple, Microsoft, and Intel

The CFMA
3 min readOct 2, 2020

Hot Stock:

Apple Inc. (AAPL)

Apple is considered one of the biggest companies in the world and possibly the biggest technology company to exist. With the company frequently releasing new devices, the share price is rather volatile due to consumer response from these market entries. The most recent release was the Apple Watch Series 6. Coming in at over $400, the watch will present a relative success or failure for the company. Apple has predicted their new product to perform very well, but they might face a decrease in share price if the watch fails to impress consumers.

The iPhone 12 is yet another Apple product entertaining high consumer expectations. Since April, Apple has been up 70%, an unprecedented hot streak. And, the share price will presumably continue to rise until the iPhone 12’s mid-October release date. Can this powerhouse company keep it up? Future releases from Apple will prove whether they are able to withstand their current market presence, resulting in either a boom or bust situation.

Stock to Consider:

Microsoft Corporation (MSFT)

Microsoft Corporation is a global technology company that focuses on development in electronics, computer software, licenses, and other related systems and services. The company’s consistent ability to capitalize on different opportunities and control the market is what sparks investor interest. With the Xbox Series X set to release in the next month and half, the competition within the gaming market remains tight. But, recently many articles have stated that the new Xbox is emerging as a more popular console than the new Playstation. In addition to this news, Microsoft completed a 7.5 million dollar deal to acquire ZeniMax Media. Although the acquisition initially showed a drop in the share price, the sudden backlash is likely temporary and potentially the deal will help turn the stock positive. If Microsoft continues to dominate the market, a boom in share price may leave Sony in the dust.

Dark Horse of the Week:

Intel Corporation (INTC)

Intel Corporation, another big technology company, saw its share price hovering around $60 before the pandemic, but took a hard hit in April. Although Intel is currently struggling, the company is largely undervalued, hence it takes the crown for “Dark Horse of the Week”.

Based on recent business expenditures and potential growth, Intel has a bright future ahead. The company is one of the first investors and among the few American companies involved with GeoPlatform, the largest telecommunications company in India.

Additionally, Intel is partnered with Alphabet Inc. subsidiary Waymo, a self-driving development company. In this partnership, Intel provides chips for Waymo that are programmed into Volvo cars. Clearly, Intel is a competitive company continuously looking for innovative integration strategies. The company spends more on research and development than any other in the market. Over the last year, Intel spent more than the next three biggest companies in the semiconductor industry combined.

Intel’s price to earnings ratio (P/E) is yet another reason the company is undervalued. The company P/E sits at 8.89, way below the average of 36 in this industry. Comparatively, the two closest competitors, Nvidia and AMD, did not experience such a drastic P/E ratio drop and show ratios of 95 and 102 respectively. Intel is trading at a very low interval, but some analysts believe the share price could reach highs of $78 in the next year.

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The CFMA

The Collegiate Financial Management Association’s mission aims to promote financial literacy and personal finance skills in order to ensure financial stability.