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Apple-AAPL-AAPL-Shares-Provide-Market-Boost-ValuEngine-Rates-it-a-Buy

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Apple-AAPL-AAPL-Shares-Provide-Market-Boost-ValuEngine-Rates-it-a-Buy Powered By Docstoc
					October 5, 2011
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Market Driver
Apple (AAPL,$AAPL) Shares Provide Market Boost, ValuEngine Rates it a Buy
For a brief moment yesterday, it appeared that the disappointment over
Apple's failure to release an iPhone 5 was going to add to an already bad
day for the markets. When tech-heads voiced their displeasure with the
"improved" iPhone 4S, tech investors dumped the stock. However, waiting
in the wings were heavy hitters that like to buy the stock on dips. They
piled into Apple when the stock declined and the rally for Apple led to a
general market turnaround by the close. It is amazing how much power this
company has developed over the years. It remains to be seen whether new
CEO Tim Cook will be able to retain the "infallibility" of Steve Jobs.
Today, the stock is up @ $22 from its interday low yesterday. Our model
likes the stock right now and rates it a "4Engine" buy. Apple Computer,
Inc. designs, manufactures and markets personal computers and related
personal computing and communicating solutions for sale primarily to
education, creative, consumer, and business customers.
ValuEngine has issued a BUY recommendation for APPLE INC on Oct. 05,
2011. Based on the information we have gathered and our resulting
research, we feel that APPLE INC has the probability to OUTPERFORM
average market performance for the next year. The company exhibits
ATTRACTIVE company size, risk and 5-year annualized return. Based on
available data as of Oct. 05, 2011, we believe that AAPL should be
trading at $505.72. This makes AAPL 26.34% undervalued. Fair Value
indicates what we believe the stock should be trading at today if the
stock market were perfectly efficient and everything traded at its true
worth. For AAPL, we base this on actual earnings per share (EPS) for the
previous four quarters of $26.81, forecasted EPS for the next four
quarters of $31.75, and correlations to the 30-year Treasury bond yield
of 2.76%.
ValuEngine Forecast
Target Price* 1-Month 3-Month 6-Month 1-Year 2-Year 3-Year 380.61 381.21
382.05 393.71 405.64 412.99 Expected Return 2.18% 2.34% 2.56% 5.70% 8.90%
10.87%

Valuation & Rankings
Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual
Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E
Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha
26.34% undervalued 2.18% 33.68% 0.81 31.53% 38.98% 18.44% 344.47 13.90
11.73 0.75 3.43 5.11 1.30 0.35 Valuation Rank 1-M Forecast Return Rank
Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank
EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG
Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank 21 16
39 89 48 46 61 48 100 71 40 73 91 99 99
ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks
Overvalued by 20% 91.89% 8.11% 70.66% 3.11%

ValuEngine Sector Overview
Sector
Utilities Consumer Staples Retail-Wholesale Aerospace Multi-Sector
Conglomerates Finance Business Services Transportation Consumer
Discretionary Computer and Technology Medical Industrial Products
Construction Auto-Tires-Trucks Basic Materials Oils-Energy

Change
1.90% 1.61% 3.50% 2.56% 2.46% 3.53% 3.69% 3.28% 2.74% 3.78% 1.88% 3.38%
3.86% 5.47% 1.27% 3.10%

MTD
2.04% 1.91% 3.96% 2.88% 2.74% 3.95% 4.13% 3.70% 3.15% 4.29% 2.20% 3.81%
4.26% 6.08% 1.56% 3.58%

YTD
-8.52% -20.87% -9.67% 0.01% -22.79% -17.20% -14.30% -23.97% -21.01% -
17.86% -11.10% -24.68% -31.99% -37.32% -31.08% -28.97%

Valuation
14.90% undervalued   24.35% undervalued   25.17% undervalued   27.40%
undervalued 27.65%   undervalued 28.11%   undervalued 28.42%   undervalued
30.45% undervalued   31.82% undervalued   32.28% undervalued   33.01%
undervalued 34.16%   undervalued 36.04%   undervalued 36.49%   undervalued
37.64% undervalued   37.83% undervalued

Last 12- P/E MReturn Ratio
-0.19% -3.71% 6.27% 0.37% -5.35% -7.79% -4.70% -7.52% -6.59% -6.38% -
2.11% -2.55% -19.96% -5.56% -5.36% -5.20% 22.96 15.33 23.18 16.05 20.00
22.67 34.97 18.86 22.94 30.84 23.96 20.19 33.74 15.49 27.00 31.06

				
DOCUMENT INFO
Description: INSIGHT OF SHARE MARKET