As I type this now, shares of Apple are trading in the $642 range. In the past 6 months, the stock has skyrocketed nearly 65%, and the crazy thing is that it may keep on ascending skyward for some time.
Last week, analyst Brian White put a $1001 stock target on Apple shares. Meanwhile, other firms on Wall St. have generous price targets on the stock, with many falling in the mid-700 to upper 800 range.
It’s not a stretch to say that investing in Apple many years ago would have been one of the most profitable investments in history. But as much as shares of Apple have increased over the past few years, there may still be room for a lot of growth ahead.
Addressing this very issue, CNBC personality Jim Cramer (who, we should note, has been known to manipulate stock prices here and there) recently called Apple the “greatest growth stock of our lives.”
Summarizing a segment from Cramer’s program Mad Money, CNBC writes:
Cramer said Apple has potential for multi-year growth that can easily be valued, such as its popular iMac, iPod, iPhone and iTV products. The market wants to see multiple revenue streams, he said.
Apple has a lot of upside, too, because many of its products aren’t yet dominant in their respective markets. Each of its products continues to take market share.
Going forward, Cramer thinks Apple can continue to be competitive because the company is so innovative.
Cramer said Apple is also returning capital to shareholders. The tech company simply has too much cash, so it has decided to return a big chunk of it to shareholders.
Nothing revolutionary there, and indeed, this echoes what the Apple Bulls have been shouting from the rooftops for years.
Put simply, Apple’s P/E is relatively low and it’s making money hand over fist with just a few products that don’t even enjoy dominant marketshare, save of course the iPad. Apple’s room for growth is immense.
Nice to see that someone finally knocked some sense into Cramer.