Apple Inc. (NASDAQ:AAPL) - Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store.
Valuation and Price Targets – Hard to believe this juggernaut sells at under 14 times this year's earnings and under 12 times 2012's consensus. Stripping out cash, AAPL sells at about 10 times next year's EPS. Apple has blown through earnings estimates for the last two years, so these figures are very likely to be revised higher. Revenues are going to be close to 60% higher in 2011 than 2010, and projected to rise another 20% in 2012. Apple is selling at around $336. Price targets are $500 at Credit Suisse, $440 at S&P and Oppenheimer has their target at $450.
Marvell Technology Group (NASDAQ:MRVL) - Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, and digital signal processing and embedded microprocessor integrated circuits. The company offers storage products, including storage system-on-a-chip, read channel, hard disk controller, tape drive controllers, solid-state drive controllers, and storage-system products for hard disk drives, tape drive electronics, optical disk drives, solid-state flash drives, and storage subsystems technology; and switching products comprising Prestera switch family, Link Street multi-port integrated switch family, and Link Street gateway products.
Valuation and Price Targets – Marvell sells at less than 10 times this year's projected earnings and less than 9 times next year's projected EPS. MRVL has average more than 20% growth in EPS over the last five years and is selling near the bottom of its five year valuation range based on P/E, P/S, P/B, and P/CF. Selling at a projected PEG of .75 and with net cash on the balance sheet in excess of $4.50/share, MRVL looks like a bargain. Marvell is currently selling at $14.30. Price targets are $22 at Credit Suisse, $21 at S&P and Citigroup has their target at $20.
Micron Technology (NASDAQ:MU) - Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (NASDAQ:DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM.
Valuation and Price Targets – MU is selling at 17 times this year's earnings but at just 8 times 2012's consensus EPS. Micron is selling near the bottom of its five year valuation range based on P/E, P/S, and P/CF. Earnings estimates have gone up for both 2011 and 2012 over last ninety days and MU sells at close to 1 times revenues. MU is selling at $9.94. Price targets are $15 at Credit Suisse, $13 at S&P and Stifel has their target at $17.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL, MRVL over the next 72 hours.