NEW YORK (TheStreet) -- Some of the upgrades to Apple's (AAPL) yet to be released iOS 8 mobile operating system have hit the Internet this week fueling speculation ahead of the tech company's World Wide Developers Conference in June.
Two screenshots were released Thursday that signaled Apple is getting serious about upgrading its Maps app by bringing public transit information to the app as well as making data improvements. Apple's recent transit and map app acquisitions include BroadMap, HopStop and Embark.
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A couple of other rumored upgrades include better data storage through the systematic deletion of text messages and updating the CarPlay app to be Wi-Fi compatible.
Apple received a boost earlier this week after Pacific Crest upgraded the company to "outperform" from "market perform" and gave it a price target of $635. The upgrade came after speculation that the iPhone 6 -- expected to be released later this year -- will feature a 4.7 inch screen, 0.7 inches bigger than the current iPhone screen.
Apple's World Wide Developers Conference will begin on June 10.
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AAPL's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although AAPL's debt-to-equity ratio of 0.13 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 41.65% is the gross profit margin for APPLE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.69% is above that of the industry average.
- APPLE INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, APPLE INC reported lower earnings of $39.63 versus $44.16 in the prior year. This year, the market expects an improvement in earnings ($42.73 versus $39.63).
- You can view the full analysis from the report here: AAPL Ratings Report