January 26, 2015

VALUATION WATCH: Overvalued stocks now make up 23.72% of our stocks assigned a valuation and 7.31% of those equities are calculated to be overvalued by 20% or more. Zero sectors are calculated to be overvalued.

Apple Of Everyone's Eye

ValuEngine Rates Apple A BUY Prior To Q1 Earnings Report

Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

Apple is reporting Q1 earnings after close today, and as always this will be a closely watched report because it is so important to the Tech sector and various indices. Analysts expect a slight boost year-over-year with the consensus being $3.23/share--compared to the $3.06 posted last year. Apple forecast Q1 revenue somewhere between $75.5-77.5 billion--with the consensus revenue figure at $76.6 billion.

As always, the key metric for Apple with be iPhone sales. They're a smart phone giant that happens to also make computers, tablets, and streaming devices. And that smart phone helps bolster sales of all the other items in their inventory. Any stumble in iPhone sales will likely cause a bad reaction on the street. Rumours from key iPhone component suppliers vis-a-vis a slowdown in demand have been around for a while now. Anything less than 75 million iPhones sold for Christmas will be disappointing according to analysts.

Investors and analysts will also be looking at emerging market demand as an indicator of the health of the global economy. Apple has benefited in recent years from growth in China, and if recent events in China negatively impact the Apple bottom line, that could also set off a bad reaction.

Apple shares have been beat down recently, so this report could set the tone for 2016.

ValuEngine continues its BUY recommendation on APPLE INC for 2016-01-25. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

You can download a free copy of detailed report on AAPL from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	100.00	0.56%
3-Month	101.90	2.47%
6-Month	103.27	3.85%
1-Year	106.09	6.69%
2-Year	108.85	9.46%
3-Year	113.87	14.51%

Valuation & Rankings
Valuation	12.53% undervalued	Valuation Rank(?)	44
1-M Forecast Return	0.56%	1-M Forecast Return Rank	87
12-M Return	-12.08%	Momentum Rank(?)	59
Sharpe Ratio	0.68	Sharpe Ratio Rank(?)	90
5-Y Avg Annual Return	16.52%	5-Y Avg Annual Rtn Rank	89
Volatility	24.32%	Volatility Rank(?)	66
Expected EPS Growth	1.49%	EPS Growth Rank(?)	25
Market Cap (billions)	579.21	Size Rank	100
Trailing P/E Ratio	10.61	Trailing P/E Rank(?)	83
Forward P/E Ratio	10.46	Forward P/E Ratio Rank	69
PEG Ratio	7.10	PEG Ratio Rank	4
Price/Sales	2.48	Price/Sales Rank(?)	33
Market/Book	5.25	Market/Book Rank(?)	20
Beta	0.89	Beta Rank	49
Alpha	-0.04	Alpha Rank	49

DOWNLOAD A FREE SAMPLE OF OUR APPLE (AAPL) REPORT BY CLICKING HERE

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