Site icon MacDailyNews

One factor that could turn Apple stock torrid again

“Apple has always been a bit of a maverick — hard to classify or predict,” Paul Whitfield writes for Investor’s Business Daily. “The company is hard to classify because it is dynamic. It has refused to stay in an easily categorized box.”

“Growth investors love that about the company, but the Street’s earnings estimates for fiscal 2016 ending in September is for 6% growth. (In fiscal 2015, EPS growth was 43% on a 28% revenue surge.) Some market watchers are saying Apple’s future is as a steady, dividend-paying stock,” Whitfield writes. “What would it take to make that conviction look silly?”

“The answer: China,” Whitfield writes. “China’s middle-class population is expected to grow from 300 million now to 500 million ‘in the next decade.’ Goldman Sachs estimates that only 11% of China’s population is now middle-class. (The U.S. percentage is roughly four times that.) A middle class is essential to the stability and wealth of a nation.”

Read more in the full article here.

MacDailyNews Take: There’s so much headroom for Apple, it boggles the mind!

Exit mobile version