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How Apple Will Soar 37%

4 | By Michael A. Robinson

Yesterday, Apple Inc. (Nasdaq: AAPL) reported the most profitable quarter in U.S. history ($18.4 billion in fourth-quarter 2015).

Yes, some sales figures were disappointing – as are the outlooks for the current quarter – but today investors are punishing the stock for what I think is just temporary stalled growth.

I appeared on Fox Business early this morning to discuss the iDevice King’s latest report – and to update my share-price prediction.

But I wasn’t able to share all of my analysis with Fox’s viewers – I saved the best for you.

Read on to watch the video – and to get “the rest of the story”…

What I Didn’t Tell TV Watchers

To see what I had to say, just watch the video below.


Now, let’s talk about what a bargain Apple is right now.

It trades at just 9.6 times forward earnings. That means you can buy the world’s most profitable company – and the world’s biggest market-cap company – for 76% less than forward earnings for the S&P 500 Index. And it’s less than one-third that of Alphabet Inc. (Nasdaq: GOOGL).

The company is still growing in China at twice the rate of that country’s GDP growth. And Apple’s “other” category – including the Apple Watch and the new Apple TV set-top box – jumped 62% in the quarter.

Would I like to see a higher stock price? You bet – and like said earlier today, I think we’re going to see $130 by Labor Day 2017.

Put all that together – and Apple remains one of the very best tech investments for the long haul on your road to wealth.

P.S. I hope you all are Liking and Following me on Facebook and Twitter. We’ve got a great community of friends, colleagues and readers there who are eager to make big money in tech stocks – today.

4 Responses to How Apple Will Soar 37%

  1. Russell Agee says:

    Sure hope your analysis is right on Apple and we see some improvement in the stock price in the coming months.

  2. Houyhnhnm says:

    The selloff in Apple was totally rational. Sales figures confirmed the iPad cash cow is visibly fading, and the iPhone cash cow is stalling out. Apple is depending on the iPhone 7 to make a big splash to maintain growth, and that is looking like a risky bet.

    The “other” category is just a sliver of income and is years away from replacing serious lost income from the cash cows. No matter how cool the new products are, this isn’t 1998 any more. Cool products and potential will propel a small-cap stock, but in this century a mega-cap stock has to have steadily growing profits to keep its stock price rising (Possible exception: Amazon may get away with only growing sales, though obviously a lot of money managers are tired of that game).

    Disney is in exactly the same boat as Apple. No matter how exciting their blockbuster movies or theme park additions are, it’s going to be under pressure until it replaces the declining income from its ESPN cash cow.

    Houyhnhnm

  3. julian says:

    I’d say i believe it will go up maybe 20-30 dollars but not soaring any where quick, so i’ll buy more on down days, little at a time. People are getting impatient by not seeing Apple verify their apps still work as used to.

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