Apple Corporation’s (AAPL) stock continues to be on fire as it hit all-time highs of $213.35 to end 2009. The stock is soaring on optimism over the holiday season and rumors about a possible new product announcement at a conference in late January.
The tech blogs have been buzzing about a supposed “tablet” product which is alleged to be like a large iPhone, with a touch screen, and is capable of playing ebooks and handling videoconferencing.
But, again, these are just rumors. It’s been enough, however, to move Apple’s stock to new highs.
Consensus Estimates Jump
Analysts are growing more bullish on the company for the full year as the rumors fly. The fiscal 2010 Zacks Consensus climbed 15 cents in the last 60 days to $7.81 per share.
However, the fiscal first-quarter estimate has fallen a penny to $2.05 per share in the last month even as 3 estimates were raised during that time period.
The company is scheduled to report fiscal first-quarter 2010 results on Jan 20. Apple has a history of beating estimates, having done so the last four quarters by an average of 23.46%.
Looking forward, analysts project 21.94% earnings growth in fiscal 2011. The 2011 Zacks Consensus rose to $9.52 from $9.38 in the last 60 days.
Fundamentals
Apple is a Zacks #2 Rank (buy) stock. It is trading with a forward P/E of 27. The company has a stellar 1-year average return on equity (ROE) of 22.6%.
Read the Oct 27, 2009 article.
10-Year Chart
Check out the 10-year stock chart for Apple. The 2009 run was impressive. The stock now trades near all-time highs.
Update to Previous Momentum Zacks Rank Buy Stocks
Solarfun Power Holdings Co. (SOLF) posted solid Q3 results in mid November that saw the company swing to profitability from last year. Estimates have also been on the rise as shares approach the 52-week high just short of $9. Read the full article.
China-Biotics, Inc. (CHBT) recently rebounded from a long-term trend line on strong Q2 results after dropping from the 52-week high in late October. Read the full article.
Whirlpool Corp. (WHR) has had a great year in spite of the challenging consumer environment, relying on cost cutting and growing international exposure to produce strong earnings. Read the full article.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
