“I pick stocks using computerized strategies based on how some of Wall Street’s smartest investors put their funds to work,” John Reese, RealMoney Contributor, writes for TheStreet. “On the strength of the iPhone sales, I decided to run both Apple and AT&T through the gauntlet of my guru strategies.”
“None of the strategies rated Apple a ‘strong interest,’ but more than one found the stock of ‘some interest,'” Reese reports. “Meanwhile, AT&T earned ‘strong interest’ ratings from two strategies.”
“Here are some of the features the guru strategies like about Apple. Its earnings per share have increased in each of the past five years, showing solid, consistent earnings growth,” Reese reports. “The stock has a relative strength of 87, meaning it has outperformed 87% of the market over the past year. And you aren’t paying much for its dynamic growth. The company’s price-to-earnings relative to growth, or P/E/G, ratio is a mere 0.33, given its 22.68 P/E and 68.83% growth based on the average of the three-, four- and five-year historical EPS growth rates. A P/E/G of 1.0 or less is acceptable, and below 0.5 is great.”
“One last factor worth mentioning is Apple’s debt: It has none,” Reese reports. “Apple may be on the cutting edge of technology, but it is conservative in terms of its financial management.”
Reese reports, “Apple’s stock price is near its 52-week high, so one has to wonder if it has room to move up a whole lot more. Of course, skeptics have been wondering about Apple’s stock price for some time — and they have been proven wrong. Both companies dominate their respective markets and are financially strong, and both are worth considering as additions to your investment portfolio.”
Full article here.
[Thanks to MacDailyNews Reader “Johnny Bravo” for the heads up.]