Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Apple (AAPL, $AAPL) Rated a Buy by ValuEngine Models

|Includes: Apple Inc. (AAPL)
Go to ValuEngine.com
March 2, 2011
ATTENTION Advanced Investors and Finance Professionals:
If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

VALUATION WATCH:  Our models find that overvaluation is approaching levels typically seen when a market correction is imminent. Overvalued stocks now make up almost 61% of our universe and 29% of the universe is calculated to be overvalued by 20% or more.  ALL sectors are now calculated to be overvalued.

Launch Pad

Apple (AAPL, $AAPL) Rated a Buy by ValuEngine Models

  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. 

  Doesn't that description sound a bit out of date when you consider what a powerhouse firm Apple has become thanks to the iPod, iPhone, and iPad?  Today the company launched its second iteration of the popular iPad computing device, which has pretty much consigned yesterday's netbooks to the ash bin of history and--once more--led to competitors scrambling to catch up in a brand new category of "must have" electronic device.

 ValuEngine has issued a BUY recommendation for  Apple Computer, Inc. on Mar. 02, 2011. Based on the information we have gathered and our resulting research, we feel that  Apple Computer, Inc. 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 Mar. 02, 2011, we believe that AAPL should be trading at $358.4. This makes AAPL 2.54% 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 (NYSEARCA:EPS) for the previous four quarters of $18.54, forecasted EPS for the next four quarters of $23.88, and correlations to the 30- year Treasury bond yield of 4.49%.

  Our models have a hard time with Apple as popularity, mystique, and the intangible allure of its products are very hard to quantify--as is the value palced on the CEO's health by investors.  It is rare to see a buy signal on the stock from our ratings model.  But  right now we see good valuation, forecast, and other metrics for the ticker.  In the past, the buy signal has been fleeting and robust--if not a little pessimistic.  The last time we had a buy on Apple for the majority of a month was back in January, 2010-- when the stock was trading at less than $200.  Before that, our last sustained buy signal came at the market bottom in 2009 when AAPL was less than $100.

Subscribers can check out the latest figures on Apple Computer, Inc. from our models HERE. 

Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

Market Indices Data
1:51PM EST Latest Change YTD
Dow Jones
12,178.90 48.44 5.19%
NASDAQ Composite
2,772.57 -8.48 4.51%
Russell 2000
818.02 -3.93 4.39%
S&P 500
1,322.12 2.24 5.13%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
39.4%
Stocks Overvalued
60.6%
Stocks Undervalued by 20%
17.08%
Stocks Overvalued by 20%
28.92%

 

ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Oils-Energy -1.43% 0.02% 9.40% 38.79% overvalued 50.48% 43.88
Basic Materials -0.70% 0.00% -0.96% 16.84% overvalued 63.52% 35.44
Multi-Sector Conglomerates -1.64% 0.00% 1.93% 12.89% overvalued 32.70% 28.88
Transportation -1.92% 0.00% -3.55% 11.96% overvalued 26.08% 26.71
Business Services -2.09% -0.27% 1.47% 11.55% overvalued 19.32% 37.72
Computer and Technology -1.56% 0.00% 8.56% 11.34% overvalued 37.99% 37.46
Aerospace -1.38% 0.00% 12.48% 10.29% overvalued 30.02% 18.75
Industrial Products -1.58% 0.00% 3.12% 9.27% overvalued 29.61% 28.63
Finance -1.37% 0.00% 3.10% 8.19% overvalued 17.10% 24.84
Auto-Tires-Trucks -1.91% 0.00% -4.44% 7.66% overvalued 41.79% 22.08
Consumer Staples -1.46% 0.00% 0.12% 7.49% overvalued 17.59% 27.18
Retail-Wholesale -1.76% 0.00% 0.59% 7.29% overvalued 27.63% 27.79
Construction -2.37% 0.00% 0.24% 7.05% overvalued 13.94% 45.13
Consumer Discretionary -1.62% 0.00% 3.25% 6.79% overvalued 24.86% 30.02
Utilities -1.12% -0.01% 1.23% 6.66% overvalued 18.23% 26.36
Medical -0.81% -0.00% 8.12% 0.28% overvalued 17.68% 44.57

 

 

Our Market Neutral Newsletter Just Posted a Record One-Month Return ! 

 Our Forecast 16 Market Neutral Strategy Newsletter portfolio just posted a whopping gain of 10.82% versus the S&P 500's gain of 3.33%. For the most recent re-balance period, we TRIPLED the S&P 500's return!  Since inception, the newsletter’s compounded return to date stands at 57.05%. The trailing 12 month percentage gain is 27.45% for the newsletter and 24.25% for the S&P 500 index.

Click HERE to Sign Up for ValuEngine's Best Performing Newsletter

 Feel like the markets are just too difficult to figure out right now?  Eager to get back into the market but worried that things are too volatile? Looking for an investment plan that can match the returns of the S&P 500 with smaller draw downs and less overall risk?  Then subscribe to The ValuEngine Forecast 16 MNS Portfolio Newsletter.  The ValuEngine Forecast 16 MNS Portfolio is based on our highly-refined and tested ValuEngine Diversified Growth Strategy.

  Overall results along with long and short-side portfolio tables are below:

Standard Strategy

Long-Bias

 

MNS

 

Short-Bias

No Stops

(70-30)

(60-40)

(50-50)

(40-60)

(30-70)

50/50 Allocation

11.85

11.34

10.82

10.3

9.79

  Our longs were led by a huge gain of 48% for MTW and a 20% return for LNG. VMC and LDSH also provided support. On the short side, we made substantial gains from CCME, FBP, MNI, PHM, and GNK—35%, 29%, 15%, 14%, and 10.5%. Since inception, this was the best performance ever posted by our newsletter.

With the ValuEngine Forecast 16 Market Neutral Strategy Portfolio Newsletter, you can run your own portfolio like a hedge fund to manage risk and profit in any market environment.


Click HERE to Sign Up for ValuEngine's Best Performing Newsletter

Our Diversified Growth Strategy Produced these Winners !

AMR Corp (NASDAQ:AMR) Up 33%

Freeport McMoRan (NYSE:FCX) Up 59%

Vivus Inc. (NASDAQ:VVUS) Short Pick Up 57%

UAL Corp (UAUA) Up 202%

China Nepstar (NYSE:NPD) Short Pick Up 30%

 The ValuEngine Forecast 16 MNS Portfolio Newsletter is derived from the ValuEngine Diversified Growth Benchmark Portfolio Strategy.  This strategy is the product of ValuEngine's academic research team and combines cutting-edge financial analysis and portfolio construction techniques with real-world Wall St. know how. 

 Since inception, the ValuEngine Forecast 16 MNS Portfolio Newsletter has provided a return of almost 60% while achieving a better Sharpe and Sortino ratios than the S&P 500.  In addition, the ValuEngine Forecast Model MNS Portfolio Newsletter beats the S&P 500's overall volatility and had a maximum draw down that was @66% less!

 

 
 
Close this window
ValuEngine.com - Rational advice, smarter investing.