Apple Earnings Start to Turn
Apple Inc. (AAPL) together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions.
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Apple shares weakened after a softer than expected earnings report. However, the resumption of growth in earnings suggests that Appleās current valuation is discounting more than its fair share of bad news.
Their strong financial position and track record suggest that this is a good entry point. S&P has a 4* rating, target of $590. Purple Chips 12 -18 month target: $USD 650.00
LOW VALUATION IN APPLE AT $USD 509.86 (AAPL-US, $504.00) FULL POSITION
PURPLE CHIPS TARGET: $650.00 POSITION SIZE: FULL (5.0%) P/E: 12.5X DIV: $12.20 (2.2%) MKT CAP: $550B Debt: Nil (Cash $100B) RETURN ON CAPITAL: 109% EARNINGS YIELD: 14.9% 5 YR EPS Growth rate*:37% P/E/G Ratio: 0.37 EPS: $40.32 2015 EST.: $43.85 2016 EST.: $48.22
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
