Apple (NASDAQ:AAPL) has gotten its groove back. For the year so far, AAPL stock has logged an impressive 22% gain, outpacing other tech heavyweights like Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NYSE:ORCL).

Heck, Apple’s even edging out Facebook Inc (NASDAQ:FB) at the moment.

Granted, I’d understand if investors get cautious here. Apple, which sports a massive $743 billion market cap, will have a tough time mustering the buying power to continue its standout gains.

There are other concerns, such as the political situation. Might the Trump’s Administration hawkishness on trade have an impact, especially in China? Or could a border tax make outsourcing more expensive? And what about the growing restrictions on immigration? A repatriation tax has been baked into AAPL stock, too, but it actually has to happen for Apple to wring any value out of it.

These are all legitimate issues, but Apple still has many key advantages that should bolster returns. Today, we’ll look at three.

There’s Still Value in AAPL Stock

Apple stock still remains a decent bargain despite its outstanding run-up YTD. Right now, AAPL trades at just 14 times earnings, versus 21 for growthier Alphabet Inc (NASDAQ:GOOGL), but even MSFT trades at 20x. Meanwhile, the average multiple for the S&P 500 is roughly 20.

Apple has also attracted the attention of some of the world’s best value investors, including Joel Greenblatt’s Gotham Asset Management, and Berkshire Hathaway Inc.’s (NYSE:BRK.B) Warren Buffett.

Apple certainly has enormous financial resources, which it can use to execute more buybacks or pump up its regular dividend, which right now yields just 1.6%. In talking about the Trump administration’s potential for a repatriation tax holiday, realize that likely would go toward a big stock repurchase program or a special dividend, but because it’s not consistent cash flow, that would be less likely to go toward raising the regular payout.

Still, Apple has a lot of money to work with — roughly $245 billion in cash and investments.

The iPhone Supercycle

The fate of AAPL stock is ultimately tied strongest to the iPhone, which still produces 60% of the company’s sales.

The good news is that the latest model — iPhone 8 is the most likely name — should soak up substantial demand. This is the 10th anniversary of the original iPhone, and Apple has made no bones about wanting this one to be a statement.

So what might we expect with the iPhone 8?

There’s a lot of buzz, including the idea that there may be up to three models. Potential features include wireless charging, advanced biometric features (such as allowing for unlocking using facial recognition), bezel-less screens, water resistance, and new touch ID technology.

Growth in Services

Of course, one of the biggest knocks against AAPL stock is the aforementioned dependence on the iPhone. Even if the iPhone 8 is a global blockbuster, it will be more and more difficult to churn out growth from an increasingly mature and saturated smartphone market — not just here, but in other developed markets and even emerging countries like China.

Apple has been bolstering its Services division — the App Store, iTunes, storage — to deal with this. The Apple Pay platform could also become a nice revenue booster.

While Services accounts for only about 9% of revenues, the business should remain a key growth driver. Based on the analysis from RBC’s Amit Daryanani, the segment could reach as much as $50 billion in revenues by 2020. Also, these revenues will likely drive higher margins and be more stable, as many of them are driven by ongoing subscriptions.

According to Daryanani: “We see potential for upside to Apple’s current valuation if the company were to continue to increase its mix of higher margin, less cyclical services revenue over time.”

Tom Taulli runs the InvestorPlace blog IPO Playbook as well as OptionExercise.com, which provides interactive tools & services for employee stock options of pre/post IPO companies. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.