Apple Inc. (AAPL) appears to be positioned for another surge in the 2015 thanks to its solid brand name, a rising consumer market, as well as a new product launch.
Let’s take a closer look at some of these positive developments below:
Apple Watch, Apple Pay
As the ultimate consumer discretionary company, Apple stands to benefit from surging consumer confidence and increased levels of disposable income. Confidence levels are at a post-Great Recession highs, while the steep decline in oil prices is putting extra money in everyone’s pockets.
Apple looks to take advantage of this in 2015 thanks to its already solid line-up of in-demand products and its normal refresh cycle. However, there are plenty of fresh opportunities on the horizon including possible developments on the Apple TV and iTunes fronts, as well as the release of the Apple Watch.
The Apple Watch is expected to sell at least eight million units, while some analysts are looking for 10 million units as a possible sales figure. While it is true that this is unlikely to move the needle too much for Apple, let’s consider that the Apple Watch opens up a new product category for AAPL and that we shouldn’t underestimate Apple or its marketing machine at this point.
After all, many were wrong about the impact of the iPhone and especially the iPad. So, it will be interesting to see what Apple can do with its newest potential game-changing product, the Apple Watch.
Let’s also not overlook Apple Pay system as this slowly reaches a critical mass. The world of mobile payments is one with massive potential and Apple, thanks to the incredible number of iPhones out there, stands to capture a chunk of this space too, further diversifying its revenue stream. Again, this isn’t likely to be a huge driver in the near term, but just the like the Apple Watch, Apple Pay has strong potential to help down the road.
Analysts Estimates for Apple Earnings
Analysts also like the outlook for Apple in the near-term and have been raising their earnings estimates as a result. The trend has been universally positive, as not a single estimate has been cut for any of the time period that we study, including the current year and next year time frames.
According to analyst projections, we will likely see double-digit earnings-per-share growth for Apple in the foreseeable future.
And before you worry about Apple hitting these loftier targets, consider the company’s incredible performance last earnings season. AAPL has beat seven out of the last eight earnings reports while it is riding a six quarter streak too. So, Apple is a pretty safe bet when it is reporting.
Bottom Line
For the bevy of positive earnings estimate trends listed above, it shouldn’t be too surprising to note that AAPL is a Zacks Rank #1 (Strong Buy) stock. This means that we are looking for outperformance from Apple in the immediate future and expect AAPL to continue being a top choice this year.
So, if you are looking for a great consumer-oriented stock to add to your portfolio this year, consider the most famous one of all, Apple. An incredible strong brand name, new products, and rising consumer confidence all suggest that 2015 will be another great year for Apple investors.
Disclosure: Long AAPL.
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