| Stock (Symbol) | Stock Price | |
Apple (AAPL) |
$357 |
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| Data is as of | Expected to Report | Sector |
February 11, 2011 |
Apr 21 |
Technology |
| Sharek’s Take | ||
 Apple’s a Rock Star. Each quarter I’m amazed at how well the company is doing — and this quarter is the best I can remember. This stock looks so good I don’t even have to mention the iPad and iPhone figures. Here’s a few key facts:
Another catalyst is coming as Steve Jobs says iPads will take half the mobile-ad spending in the second half of 2010. So Apple is not only Apple but also a Google mini-me. |
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| One-Year Chart | ||
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One negative is triple-digit profit growth is gone. Now we have only 75% growth. Historically, top stocks tend to decline when growth falls from the say 50% range to the 20% range, so this stock is still red hot. |
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| Earnings Table | ||
 Apple’s revenue growth in the last five quarters is: 32%, 49%, 61%, 67% and now 71%. Business is accelerating — unheard of for such a large corporation. Profits grew 75% last quarter.Boom! AAPL crushed estimates. Last quarter AAPL beat by $1.56 — a dollar fifty-six! A year ago the estimate for last quarter was $3.56. Three months ago the company was supposed to make $4.87 — analysts upped this during the quarter to $5.39 — and the company came through with $6.43. That’s almost double earlier estimates. Annual Estimates continue to increase. Now we’re looking at almost $23 for the year. The stock is selling for around $350 and the company is expected to make $147 within five years. 2014’s estimate is $30.87, 2015’s is $37.30. Quarterly estimates flew higher. NxtQtrEst increased by more than a dollar. With the trend in increases AAPL should be growing at 75% through the fall. The 4QtrsOutEst needs time to grow. |
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| Fair Value | ||
 Apple is selling for 16 times earnings and is worth 35 times earnings. This stock is worth $800 now and is selling for around $3.50. There’s not even a whole lot of risk because the P/E is so low. Obviously the company sells iPads and iPads and songs every day, so its not like revenue can dive. |
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| Ten-Year Chart | ||
 Apple’s ten-year chart is amazing.The stock is extended right now but profits are expected to climb 51% this year so I don’t see a decline on the horizon. In fact, this could lead to a spike up in the shares — a climactic run — as the 16 P/E is just too low. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
1 of 21 |
Apple is the top stock in the 21 stock Growth Portfolio and the 10 stock Aggressive Growth Portfolio. With a 16 P/E and 75% profit growth, this is the best investment opportunity I’ve ever seen. | |
Aggressive Growth Portfolio
1 of 10 |
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AAPL’s P/E was sweet 16 last quarter. It’s still 16. The stock’s gone from $304 to $357 (+17%) and still the P/E hasn’t had time to expand. A year ago, when the stock was $200, the P/E was 18. Annual estimates were $11.34 — half what this year’s estimates are.