One Reason Apple (AAPL) Stock Is Trading in the Green

NEW YORK (TheStreet) -- Shares of Apple Inc  (AAPL) are fluctuating in and out of the green, higher by 0.15% to $130.39 in mid-morning trading Tuesday, after the tech giant introduced its updated MacBook Pro and iMac ahead of its worldwide developers conference on June 8, the Associated Press reports.

Apple updated its 15-inch MacBook Pro laptop with a new trackpad, faster flash storage, and a longer battery life. The device starts with a 2.2-gigahertz Intel Core i7 chip for $1,999.

The company's updated iMac desktop computer also costs $1,999 and has a higher-resolution, a 27-inch screen, and a faster processor, the AP added.

The company also reduced the price for its top-end iMac to $2,299 from $2,499, the AP noted.

Additionally, Apple has shelved plans to create a television set because it could not create a differentiating feature from the already existing TVs, according to The Wall Street Journal.

Yesterday, billionaire investor Carl Icahn said Apple remains dramatically undervalued, and is worth almost double the current price, according to CNBC.

In a letter to Apple CEO Tim Cook, Icahn wrote that he values Apple shares at $240. Icahn also called for accelerated buybacks, CNBC added.

The investor said his team believes that Apple is poised to enter and "dominate" two new product categories, television and automobile, CNBC reported.

Apple designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions, and applications.

The company is based in Cupertino, Calif.

Insight from TheStreet's Research Team:

Apple is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Here's a snippet of what Jim Cramer, Portfolio Manager and Jack Mohr, Director of Research - Action Alerts PLUS wrote about the stock:

In the letter, Icahn highlights Apple's valuation discrepancy vs. the broader market, with shares trading at a 60% discount to the S&P 500 (11.9x 2016 earnings vs. the index's 17.4x average). He argues that market participants -- including institutional investors, sell-side analysts and financial media -- are failing to value Apple's net cash separately from its business, adjust earnings to reflect the company's real tax rate, validate the growth prospects of newly entered categories, or appreciate the company's ability to maintain premium pricing and elevated margins.

From a category perspective, Icahn believes Apple is well positioned to disrupt the TV and automobile markets, which he expects Apple to enter in 2016 and 2020, respectively. He also expressed confidence in Apple's core iPhone business, which he anticipates will continue taking market share from competitors, particularly in emerging markets.

- Jim Cramer and Jack Mohr, ' Our Takeaways from Icahn's Letter to Apple' originally published 5/18/2015 on ActionAlertsPLUS.com.

Want more information like this from Jim Cramer and Jack Mohr BEFORE your stock moves? Learn more about ActionAlertsPLUS.com now.

Separately, 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

You can view the full analysis from the report here: AAPL Ratings Report

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