Apple Inc. (
reached a new 52-week high of $95.99 on Jul 7, 2014. The bullish
run reflects the growing anticipation for the iWatch as well as the
positive outlook for iPhone 6.
The closing price of Apple on Jul 7 was $95.97, representing a
strong one-year return of about 61.9% and a year-to-date return of
about 21.5%. The S&P 500 jumped 20.6% and 8.0%, respectively,
during the same period. Average volume of shares traded over the
last three months stands at approximately 66.426K.
Apple delivered a positive average earnings surprise of 6.0% over
the past four quarters. This Zacks Rank #3 (Hold) stock has a
market cap of $567.0 billion and a long-term expected earnings
growth rate of 12.8%.
Key Growth Catalysts
Apple is rumored to launch its much-awaited iWatch in Oct 2014. Per
sources, the company expects to ship about 50 million units within
the first year from its date of release.
Per The Wall Street Journal, iWatch may come in multiple designs.
It is believed that Apple may use different screen sizes to cater
to a large demography (price-wise) as well as to diverse wrist
sizes, thereby expanding its user base. The device will include
more than 10 sensors to monitor health and fitness related data.
iWatch's close integration with Apple's recently announced
HealthKit data storage platform has further fueled the rumors. Per
the website, iWatch's biometric sensors will allow users to measure
heart rate, blood pressure and blood glucose. The in-built sensors
can also perform sweat analysis.
The upcoming iPhone 6 is also expected to drive growth for the
company. Recently, Apple has shown some resurgence based on its
expanded capital program, 7:1 stock split, new OS X Yosemite, iOS 8
and HealthKit. We believe that successful iWatch and iPhone 6
launches will further boost the shares in the near term.
The Zacks Consensus Estimate for 2014 has increased a couple of
cents to $6.30 per share over the past 30 days. The earnings
estimate for fiscal 2015 has also increased a couple of cents to
$6.89 over the same period.
Other Stocks to Consider
Other better-ranked stocks in the technology sector are
Intel Corp (
Citrix Systems (
Autodesk Inc (
. All these stocks sport a Zacks Rank #1 (Strong Buy).
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