The Zwieg strategy likes the stock's price-to-earnings ratio of 15.1 times, its sales growth, its consistent increases in earnings per share and its total lack of debt. The screen also looks at annual and quarterly earnings acceleration, and indications are that the Apple's revamped products will continue to push that growth at a rapid clip.
There might be some concern that the iPad's sales growth will slow down. After all, 73% of American tablet-owners have iPads, according to a Forrester Research survey. Certainly, also, Apple is likely to lose some market share as competitors bring out a bevy of new tablet computers. But the growth in the overall tablet market is likely to keep accelerating as computer users move off laptops and desktops, so iPad sales are likely to remain burning hot for the foreseeable future. Again, that fits nicely into the demands of the Zweig strategy.
In short, you do not have to want an iPad or iPhone to want Apple stock -- because plenty of people around the world do want these gizmos. Apple is worth more than a half-trillion dollars, and it still has room to grow.
At the time of publication, Reese and his clients were long AAPL..
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV