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Should You Snack on AAPL Stock in 2014? Our Experts Weigh In

Apple stock has momentum heading into the new year

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AAPL Stock Is Ready to Grow

jeffreeves110 Should You Snack on AAPL Stock in 2014? Our Experts Weigh InBy Jeff Reeves
Editor, InvestorPlace.com and The Slant

Everyone knows the basics behind Apple (AAPL) — AAPL stock has a decent forward P/E of 12, which is lower than the market broadly and especially large cap tech. There’s also $146 billion in cash in the bank, a $60 billion buyback plan running through 2015 and a nice 2.2% yield.

These are powerful arguments for stability. But what about growth?

Consider these three reasons why AAPL stock should keep growing:

China: We recently got confirmation of a deal between AAPL and China Mobile (CHL) to put the Apple iPhone into the biggest telecom market in the world. Considering that the Apple China market share was just 5% to start 2013 … that’s a lot of untapped customers.

e-Commerce: Sure, Android has an edge on raw market share. But tech giant Adobe (ADBE) recently estimated that iOS-based devices from Apple drove 77% of holiday e-commerce done on mobile devices. Android? Less than 5%. So while market share matters, don’t discount the power AAPL has to connect with actual transactions. Remember, Android and Motorola don’t contribute anything to Google (GOOG) earnings right now — and profits are what investors watch most.

Momentum: In this market, a year can change a lot. And now Apple stock is testing new 52-week highs and has snapped back 40% since July. Sure, AAPL stock may not top $700 again anytime soon. But in the next few years anything’s possible — and in the short term, $600 seems to be the next stop. Don’t bet against a momentum play in this market — especially one like Apple where there are still plenty of bears out there to keep the stock honest.

As of this writing, none of the contributors had a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/aapl-stock-apple-2014/.

©2014 InvestorPlace Media, LLC

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