Friday, September 14, 2012

Why Now is the Ideal Time to Buy Apple

Apple (NASDAQ:AAPL) � This great American success story saw its stock put under pressure following the death of founder Steve Jobs. But the new management team was handpicked by Jobs and is expected to perform well.

Analysts are estimating sales growth of 30% in FY 2012 (ending in September) versus a projected 67% rise in FY 2011. At just 9.6 times FY 2012 earnings estimates the stock looks undervalued.

The Trade of the Day recommended AAPL on Oct. 10 after it bounced from its 200-day moving average. The stock is in a powerful bull trend, and any time it dips to its bullish support line and 200-day moving average it should be bought.�

A recent report from Credit Suisse analysts targets AAPL at $500 within 12 months. Technically a quick trade could take the stock to its 50-day moving average at $395 and much higher longer term.

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