NEW YORK (TheStreet) -- Apple (AAPL) climbed 0.75% to $536.86 at 11:54 a.m. on Monday amid reports that the tech giant is in talks with Comcast (CMCSA), the largest U.S. cable provider, about a joint streaming television service that would use an Apple set-top box.
Under the proposed arrangement, Comcast would provide special treatment on its service to ensure that the streaming content would not suffer from other Web traffic, according to The Wall Street Journal. Apple would allow users to stream live and on-demand content stored in the cloud.
If it comes to fruition, then the deal would mark a significant new level of cooperation between cable and tech companies. Comcast signed an agreement with Netflix NFLX last month to ensure the service's content streams more quickly for Comcast customers.
Must Read: Warren Buffett's 10 Favorite Stocks
TheStreet Ratings team rates APPLE INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their 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, increase in stock price during the past year, 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 ($42.74 versus $39.63).
- You can view the full analysis from the report here: AAPL Ratings Report