This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Apple Will Be Triumphant by Year-End 2013

Stocks in this article: AAPLCHL

NEW YORK ( Market Bulls) -- Apple (AAPL) is still the No. 1 stock to buy.

Markets have found a bottom value (just north of $400), and the most well-known brand in the world will now regain its footing and move back toward the higher end of its historical valuation for the rest of 2013.

The main fundamental driver for this will come in the back end of 2013, where the Street's earnings could rise as high as 15% (after the 14% declines that will likely be seen in the first half of this year).

Markets are clearly at an inflection point with the stock valuation of Apple, and this presents some excellent opportunities for investors looking to capitalize on the rebound. While the June quarter might not be stellar, any lags in the stock price will only extend the window of opportunity for new buy positions.


Most promising will be the new line of products scheduled to roll out in the second half of the year. This will be the central reason to own the stock.

Additionally, there is a growing chance Apple will start giving back more cash to investors, in a move that is long overdue. An announcement in this area is another factor that might come before the second half of the year, but once this is seen, it might be too late to latch on to the upside momentum.

Announcements to raise dividends could come as soon as the third week in April (when Apple reports its March quarter results). It's going to be a modest increase (from $10 now to just over $14), and based on largely the cash the company generates from U.S. markets.

Low-End Competition From Samsung

Fundamentally, what's probably going to be the more important question investors will ask: How is Apple going to be competing with Samsung in the low-end phone market? So, if investors feel a greater confidence in the product release schedule, we will see the next main driver for shares here over the next year.


A good portion of this will likely be based on whether Apple chooses to offer a cheaper iPhone, which is starting to look inevitable. The timing for this announcement and release has been tricky to anticipate, but this is most likely something we will see by the beginning of the December quarter. A move like this would be seen in conjunction with China Mobile (CHL), the largest mobile carrier in the world, so the combination of all this could create a big splash for Apple and its stock price.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs