Is It Safe? Apple Hype Masks Overvaluation

"Is It Safe?" looks at a company's risk-and-reward potential. Find out if your stocks are safe at 4 a.m. on Tuesdays and Thursdays.

Under Steve Jobs, Apple(AAPL Quote) has become a commercial and cultural phenomenon. After all, Jobs introduced the world to the iPod and iPhone.

Since Jobs' January departure to tend to health concerns, Apple's stock has soared 68%. And with his expected return this week, many expect Apple to rally to even greater heights. Those expectations are probably exaggerated.

There's no doubt Apple has been wildly successful. With more than 1 million iPhone 3G S units sold since its release last month and rabid coverage of releases hyping products far more than any other ad campaign, logic suggests that the Apple machine won't slow anytime soon. ...