Originally Posted by mechtech
Bubble?! Apple has a P/E of under 10
, and billions of cash in the bank.
Apple is priced lower than many value stocks, but has the expectations of a growth stock. Time and time again people post about Apple financials that have no idea how the stock market works.
Objectively, Apple stock is an absolute steal, unless you really have a strong feeling that they will never again release a trend setting product like the Iphone or Ipad. Personally, I feel that if Apple can make the Ipad, which was the butt of jokes and an "oversized ipod" into an entirely new market, they will have no trouble following up with many more successful products. The fact of the matter is that the tech world follows Apple blindly and clones their products, which means that they are guaranteed success even if they release fluff products like the Ipad was.
List of stocks with P/E lower than APPL
American International Group Inc AIG 2.43
Ford Motor Co. (DE) F 3.15
Seagate Technology Plc STX 5.54
Assurant Inc AIZ 5.54
Cliffs Natural Resources, Inc. CLF 5.57
Yahoo! Inc. YHOO 6.19
Western Digital Corp. WDC 6.33
Apollo Group, Inc. APOL 6.33
Pitney Bowes Inc PBI 6.68
Western Union Co. WU 6.73
SLM Corp. SLM 7.82
MetroPCS Communications Inc PCS 7.83
Horton (D.R.) Inc. DHI 7.86
ConocoPhillips COP 7.97
Abbott Laboratories ABT 8.00
CF Industries Holdings Inc CF 8.29
Allstate Corp. ALL 8.35
WellPoint Inc WLP 8.67
Northrop Grumman Corp NOC 8.76
Discover Financial Services DFS 8.76
Joy Global Inc JOY 8.81
Peabody Energy Corp BTU 8.84
AFLAC Inc. AFL 8.87
Xerox Corp XRX 8.91
Dell Inc DELL 8.95
Yeah FORD is a good investment.. Half of these stocks you could have shorted and made a killing.
P/E isn't everything. And I'll also tell you having money in the bank you can't spend is worthless.. The amount of tax they'd pay on that money is ridiculous and no loophole would get them out of it. Again, I shorted APPL in August and I'm pretty sure most Financial Advisers would have said that is investment suicide. ROA is probably a better indicator of company health and APPL has been sliding on ROA since June 1.