Apple (AAPL,$AAPL) Remains a Buy According to ValuEngine.com
Apple Computer, Inc. (AAPL,$AAPL) designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers.
We spoke yesterday about Apple losing its retail guru to the decidedly less hip retail pastures of JC Penney so for today's bulletin we provide critical ValuEngine data on the stock. We retain a buy on what is now the second largest company trading on the US stock exchanges. Historically, our long-term chart shows some astute buy calls with the last one coming in January 2010 in the midst of the company's spectacular growth out of the March 2009 bottom.
ValuEngine has issued a BUY recommendation for Apple Computer on Jun. 16, 2011. Based on the information we have gathered and our resulting research, we feel that Apple Computer has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, risk and 5-year annualized return.
Based on available data as of Jun. 16, 2011, we believe that AAPL should be trading at $393.02. This makes AAPL 16.86% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For AAPL, we base this on actual earnings per share (EPS) for the previous four quarters of $22.38, forecasted EPS for the next four quarters of $26.89, and correlations to the 30-year Treasury bond yield of 4.20%.