This Day On The Street
Continue to site
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

Is Apple a Value Stock or Growth Stock?

After reporting one or two more solid quarters, fund money will again flow into Apple, which not only retards the selloff but turns the media around to the bullish thesis again. Fund managers won't have much of a choice, and they won't want another choice. Apple pays a 2.5% yield with a forward payout ratio less than 12%. Once you remove the declining margin issue, which I think Apple will, you remove any reason why large funds won't want to increase their exposure.

We can expect margins to increase because energy prices are falling. As long as oil continues to fall, the cost of production and distribution of Apple's products will remain favorable. Lower energy prices also mean that consumers will have more disposable income, and that is what will continue to keep demand high for Apple products.

To be sure, Apple can fall further, but unless there is a significant negative shift against Apple in the space that no one can predict, Apple's margins should improve, not deteriorate. Buy Apple now, or you will likely have to buy at a higher price in the near future.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $124.75 0.00%
BBRY $9.89 0.00%
GOOG $524.05 0.00%
NOK $7.62 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs