“There are lots of good reasons to own shares of Apple Inc.,” John Shinal reports for MarketWatch. “Chief Executive Steve Jobs has transformed the iconic PC maker into the dominant player in the digital-music market, posting top line growth that has left its traditional rivals in the dust.”
Shinal reports, “Thanks to continued strong demand for the company’s iPod media player, Apple sales are expected to rise 26% to $24.3 billion for its fiscal year ending in September.”
“By contrast, big PC makers such as Hewlett-Packard Co. and Dell Inc. are expected to post single-digit sales growth at best. And Microsoft Corp., Apple’s archenemy in markets ranging from software to handheld music players, is seen posting top line growth of 14%, helped by its first update of Windows (now Vista) in five years,” Shinal reports.
Shinal reports, “And just when analysts were beginning to question how long the iPod could continue to drive growth, Jobs unveiled the iPhone, which puts Apple into the market for a combination cell phone and MP3 player. Some fund managers see the gadget as providing another leg for the Apple growth story to stand on.”
“Clearly, if you’re looking for growth in the universe of large-cap PC-related issues, Apple has been the place to be,” Shinal reports.
“Still, there’s also a good reason not to own Apple shares,” Shinal reports. “The fact that analysts were raising estimates BEFORE Apple announced the product was a red flag to one fund manager, who sold off his Apple stake after holding the shares for about a year.”
Full article here.
MacDailyNews Note: Of 27 analyst firms making recommendations on AAPL, 4 say “Hold,” 18 say “Buy,” and the remaining 5 say “Strong Buy.” Analyst recommendations for AAPL via NASDAQ.com here.