NEW YORK (TheStreet) -- Shares of Apple (AAPL) rose 1.08% to $99.43 ahead of the tech giant's highly-anticipated news conference at 1 p.m. EST on Tuesday, during which the public expects the company to unveil the iPhone 6 and the oft-rumored iWatch.
The consensus is Apple will reveal two iPhone 6 models, one with a 4.7-inch screen and one with a 5.5-inch screen. Apple will reportedly use Sapphire glass instead of Gorilla glass for the cover of the new iPhone. The company currently uses Sapphire glass for the iPhone 5s' camera lenses and the disk covering for the Touch ID home button.
Apple will also reportedly unveil a new mobile payment system for the iPhone 6 in collaboration with major banks and credit card companies.
Watch the video below to see why TheStreet's Jim Cramer says the new products will raise Apple's 2015 numbers:
"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, notable return on equity, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although AAPL's debt-to-equity ratio of 0.26 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 1.18, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 44.56% 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 20.69% is above that of the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.72% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AAPL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full analysis from the report here: AAPL Ratings Report
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