2 of 9
BACKNEXT
Apple
(AAPL) P/E: 16.8, EPS Growth: 19%

Some slices of Apple should be part of every healthy stock portfolio. The tech sweetheart blew past expectations in its most recent quarter, thanks to twice as many iPhone sales compared to the same quarter a year ago.

The iPhone, which already holds 25% of the U.S. market and is second only to Research In Motion's Blackberry, is still gaining market share -- and not just in the U.S. The iPhone is on the heels of RIM globally and is rapidly gaining on Nokia, the dominant smartphone maker worldwide.

It's still unclear whether Apple's new tablet computer, the iPad, will be as big a success as the iPhone and iPod. And since tech companies live or die on product cycles, some analysts are wary about how Apple's stock will fare after 2009's 150% run-up. Global Equities Research analyst Trip Chowdhry calls the iPad a "technology marvel" but warns that Apple's exclusivity with AT&T could drive away adoring customers.

Apple's stock still looks attractive through. Shares are currently trading at 17 times earnings estimates for fiscal 2010, which Cornerstone Capital Management's chief investment officer Tom Kamp said leaves a fair amount of upside, as earnings are expected to grow 19% annually, on average, for the next few years. Apple is a big holding in Kamp's Keystone Large Cap Growth Fund, accounting for about 6% of the fund's assets.

--Hibah Yousuf

NEXT: Gilead Sciences

Last updated February 13 2010: 11:57 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.