) reached a new 52-week high of $101.09 on Aug 20, 2014. The
bullish run reflects the positive outlook for the upcoming iPhone
The closing price of Apple on Jul 7 was $100.57, representing a
strong one-year return of about 40.1% and a year-to-date return of
about 27.3%. The S&P 500 jumped 20.9% and 8.4%, respectively,
during the same period. Average volume of shares traded over the
last three months stands at approximately 53.459K.
Apple delivered a positive average earnings surprise of 6.5% over
the past four quarters. This Zacks Rank #3 (Hold) stock has a
market cap of $606.2 billion and a long-term expected earnings
growth rate of 12.9%.
Key Growth Catalysts
The upcoming iPhone 6 is expected to drive growth for the company.
Apple is expected to launch a big screen iPhone, which will help it
to counter intensifying competition from Samsung as well as
low-priced Asian handset makers.
In the recently concluded third-quarter 2014, iPhone unit sales
increased 13% year over year to 35.20 million. Revenues climbed 9%
from the year-ago quarter to $19.75 billion.
Apple experienced strong iPhone sales (up 55% year over year) in
the BRIC (Brazil, Russia, India and China) countries during the
quarter. Apple's partnership with China Mobile (
) positively impacted results in Greater China. iPhone adoption
continues to remain strong among enterprises such as Medtronic and
Although iPad reported a dismal quarter, the upcoming iPad Air 2
will drive unit sales. We believe that the availability of
) Office and the partnership with International Business Machines (
) will boost iPad adoption among enterprises over the long haul.
Apple is also 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.
The Zacks Consensus Estimate for 2014 increased a penny to $6.31
per share over the past 7 days. The earnings estimate for fiscal
2015 also increased a couple of cents to $6.93 over the same
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