Stock to Buy: Apple
At around $400 or so, Apple stock is a decent buy right now. Its top competitor (Samsung) is struggling, analysts at Raymond James just upgraded the stock, and the blogosphere is buzzing about the potential of an “iPhone mini” to bring bigger volume to the smartphone giant even if it comes with smaller margins.
There are reasons to be skeptical, of course, after Apple’s fall from grace. Shares remain off about 35% from peak valuations last fall of more than $700 per share, and many are worried that the company isn’t innovating beyond dressing up its existing line of iPhones and iPads.
However, a $100 billion share buyback and dividend plan, a forward price-to-earnings ratio of less than 10 and a current dividend yield above 3% means Apple isn’t just standing still. And after several months of negativity, the bad sentiment seems baked in.