This Day On The Street
Continue to site
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 Buy or Are the Haters Right?

NEW YORK (TheStreet) -- There's been a tug-of-war with shares of Apple (AAPL - Get Report) in 2014. At $529, it is down nearly 6% for the year to date while up over 30% for the past 52 weeks.

Still, Apple's stock has lost some of its luster and the company is no longer the most talked about name in finance. That focus has shifted to Alibaba, social media stocks and whatever is the hot topic of the week.

So what's wrong with Apple? It has one of the strongest balance sheets in the world, industry-leading margins and substantial market share, yet the stock still trades at a discount to the broader market.

Consider the valuation of the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 compared to Apple:

Surprisingly, Apple still grew sales 9.25% in fiscal 2013 and expectations are for the company to grow revenue 5.8% in the current fiscal year. 

Must Read: Trading Guidelines for Apple and Facebook Earnings

While there are concerns about over-saturation in the smartphone market, analysts and Apple fans are hoping the company will have several new products on the way to diversify its dependency on iPhone sales. I'm not fully convinced wearable technology will take hold, or that Apple will be able to create another market out of thin air as it did with the iPad. 

My issue with Apple isn't the growth or product headwinds, although these are concerns. By buying shares of Apple, I recognize that its growth may remain very limited for quite some time. But its cash hoard, balance sheet and share buyback program make it more comforting to be a shareholder. 

1 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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs