The same analyst touting Comcast just the other day, brought this forth. I love this guy, because he explains the why behind everything I already know about a company thru my own number crunching and graphing.
“Apple Inc. (AAPL) — The company’s high-tech hardware, including the iPhone, iPad and Mac computers, make it one of the most well-known brands in the world. It is also a leader in customer satisfaction.
Capital IQ expects profits to be enhanced by increased volumes, more common components and an increased focus on software and services. Its analysts believe Apple’s “superior ecosystem” and new product launches will keep iPhone customer retention rates high. While it’s still early, they predict the company’s latest gadget, the Apple Watch, will be a success.
Capital IQ estimates earnings of $8.95 per share for fiscal year 2015 (ending in September), up from $6.45 last year, and $9.54 in FY 2016. Its analysts have a 12-month target of $150 on AAPL stock.
Free cash flow generation is a positive, and the company’s massive cash position of $194 billion can be used for stock repurchases, dividends and acquisitions.
Following a run from about $80 in April 2014 to above $134 in April 2015, AAPL stock has been consolidating in a rectangle with resistance at roughly $135 and support at its May low of $123.36. And under that support line is a trading range of support.
Sellers have dominated since March, but this high-quality technology stock is a traditional target for institutional buyers.
Since the current market crisis has little to do with Apple’s success, I believe it is time for traders to step up and enter orders to buy AAPL stock under $122 for a trade to $150 in four months. With a P/E ratio of 14 times estimated fiscal 2015 earnings, AAPL stock is also suitable for long-term investors who wish to hold shares for an indefinite period of time.” As before with Comcast, all bold emphasis is mine.
Apple began paying a dividend a while back, and as it was one of the very safest dividends on earth. It is also becoming a very safe-dividend grower… and that’s where our interest comes in. All the numbers I use, and the charting of them suggested to me that this company ought to be in the portfolio of every one wanting to generate safe-dividend growth as their investment end. The guy whose ideas come my way from time to time, writing up one of my issues, always confirms that which I had already discovered, when he states that those particular stocks are “suitable for long-term investors.” That’s us, gang! I have added some more at $125.14, so as to safely-grow our portfolio dividend income a bit more.
Here’s to your successful investing!
Harold F Crowell