|March 2, 2011 |
| |ATTENTION Advanced Investors and Finance Professionals:
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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Doesn't that description sound a bit out of date when you consider what a powerhouse firm Apple has become thanks to the iPod, iPhone, and iPad?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.
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|1:51PM EST ||Latest ||Change ||YTD |
ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued by 20%
Stocks Overvalued by 20%
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 |
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