Apple is Back in a Big Way

Stock (Symbol) Stock Price

Apple (AAPL)


Data is as of Expected to Report Sector

February 2, 2014

Apr 21 – Apr 27


Sharek’s Take
David SharekApple (AAPL) is back in a big way. The company has just completed its 3rd straight quarter of 20% profit growth, and with a P/E of just 14 it makes sense for me to add it back into the Growth Portfolio. “Demand for the new iPhones has been staggering” said CEO Tim Cook, and he added there’s a significant backlog of orders for the new phone. This tells me AAPL could beat estimates in the coming quarters — and it just beat by 54 cents last qtr. One thing I really admire is 2015 estimates have increased in each of the last 4 qtrs, up from $6.81 to $8.51. This stock is a great selection for value investors and growth investors as it has a P/E of just 14 but is expected to grow profits around 25% the next three qtrs. AAPL has been on a slow climb higher since this data was compiled on 2/2 and is $126 today.
One-Year Chart
Profit growth of 48% was great but I’ll take mid-20% growth out of a large company like this. That P/E of 14 is excellent when we compare that to the profit figures at the bottom of the chart. This stock just broke past $120 and that’s a buy signal.
Earnings Table
AAPL_2015_Q1_EPSProfit growth was an astonishing 48% last qtr as sales increased a robust 30%.

AAPL whipped profit estimates last qtr on staggering demand for the iPhone 6.

Annual Profit Estimates
 have been rising for the past year, at healthy rates.

Quarterly estimates show at least 23% profit growth coming the next few qtrs and these numbers are rising.

Fair Value
AAPL_2015_Q1_PHEven at $126 this stock has good upside, and my guess in these Fair Values will rise during the year as estimates continue to increase. Plus, AAPL is in demand from money managers now, so the stock is timely.
Ten-Year Chart
AAPL_2015_Q1_10yrI’ve made two decisions to sell AAPL in the past and each time I’ve bought back in at a higher price. But 2013 and 2014 were poor profit growth years. I may have to change my way of investing, and just become a buy-and-hold manager who has more stocks in his portfolio, yet gives each stock more room to breathe.
60% in Power Ranking Bottom Line
Growth Portfolio

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Apple is now once again the apple of investors eyes and the top stock on the NASDAQ. The numbers look great and there’s lots of momentum in this name, but AAPL has disappointed in the past so we can’t make this a #1 holding like we used to.

AAPL will rank 7th of 24 stocks in the Growth Portfolio Power Rankings. I will sell Michael Kors to add AAPL into the Aggressive Growth Portfolio where it will rank 6th of 12 stocks.
Aggressive Growth Portfolio

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