Apple's (AAPL - Get Report) quarterly earnings report failed to inspire Wall Street traders last week, yet investors should remain energetic about the tech giant's stock, said Philip Martin, portfolio manager for Martin Investments at Covestor.
"Throughout their product lines, they have done a tremendous job of generating great profit margins and will continue to do so. With the ecosystem they are building, they are making a simple solution for the modern consumer," said Martin. "That's very powerful and going forward will continue."
Apple reported net income of $3.28 per share in its fiscal first quarter last Tuesday, surpassing Wall Street's consensus estimate of $3.24 per share. The iPhone maker posted revenue of $75.87 billion in the period, falling short of Street forecasts of $76.41 billion. Apple shares are down 8.5% so far in 2016.
"The world is becoming more technical, and the company's CEO said he sees tremendous upside in the digital consulting business," said Martin. "We are seeing all corporate areas becoming technical, so this will certainly benefit Accenture."
"They make money on transaction processing, their network is built. And whether there is a fashion fad of Lululemon (LULU - Get Report) or Crocs, it does not matter because MasterCard is making money," said Martin.
"They added a good product line in terms of preventative treatment in hospitals as well as a potential tax write-off with that deal," said Martin.