Apple stock could rise to $135 in 2017, driven by earnings growth as well as multiple expansion.
Shares of Cupertino, California-basedApple (NSDQ:AAPL) have been in a sort of year-end rally. After having traded in-line with the major stock market indices for the most part of 2016, the stock seems to have broken out with some momentum in the last month of the year. AAPL stock is up 4.6% in the last one month (since Nov 29),outperforming the 1.3% rise in the Nasdaq Composite (INDX:COMPX) and the 2.2% gains made by the S&P 500 (INDX:SPAL)in the same timeframe. Can Apple carry this year end momentum into 2017? Well, we believe AAPL stock is headed for higher grounds in 2017 and here are 3 reasons as to why.
The iPhone 8 Super Cycle
The iPhone 8 Super Cycle, due to start with the expected launch of the new iPhone in September 2018, has been talked about a lot. There has been a lot of hype among Apple analysts and investors alike. A couple of recent analyst notes come to mind in this context. RBC capital recently added AAPL stock to its top tech stock picks for 2017. As reported by IBD, RBC analysts Amit Daryani and Mitch Stevessaid “The iPhone 8 could trigger a supercycle given the aging installed base of iPhones in use.” This came closely on Gene Munster’s last AAPL note from the desks of Piper Jaffray. The departing Apple analyst expects the iPhone 7 unit growth to come in higher than consensus while predicting next year’s iPhone model to be “compelling enough to sustain high single-digit to low double-digit unit growth,” as reported by Bloomberg. With major feature updates in store for the loyal Apple fan base, it is reasonable that the iPhone 8 will fly off the shelves, faster than ever. Add to this the fact that the 8 models could rake in higher ASPs and higher profit margins and the positive impact on Apple’s largest revenue segment becomes hard to ignore. (See also: An Unexpected Catalyst For Apple Inc.’s (AAPL) iPhone 8 Super Cycle)
Top Performing Stocks To Buy Right Now: Dean Foods Company(DF)
- [By Peter Graham]
A long term performance chart shows shares of WhiteWave Foods peakingtwo summers in a rowwhile mid capThe Hain Celestial Group, Inc (NASDAQ: HAIN) also peaked two summers in a rowandsmall cap Dean Foods Co (NYSE: DF) has been moving a bit higher for the past couple of years:
- [By Benzinga News Desk]
In the parched terrain just south of the United States border, the prices of food and other necessities follow the dollar, whose value has been climbing: Link
Industrial Production (MoM) for Feb 0.00% vs 0.20% consensus estimate; Manufacturing Outputs (MoM) for Feb 0.50% vs 0.40% consensus estimate.
The University of Michigan's consumer sentiment index for March is schedule for release at 10:00 a.m. ET.
The index of leading economic indicators for February will be released at 10:00 a.m. ET.
The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.
Wunderlich upgraded Adobe Systems (NASDAQ: ADBE) from Hold to Buy
FBR Capital upgraded L Brands (NYSE: LB) from Market Perform to Outperform
Morgan Stanley upgraded Dean Foods (NYSE: DF) from Neutral to Overweight
Baird downgraded Patheon (NYSE: PTHN) from Outperform to Neutral
Citigroup downgraded SeaWorld Entertainment Inc (NYSE: SEAS) from Neutral to Sell
Goldman Sachs downgraded Macerich (NYSE: MAC) from Neutral to Sell
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email firstname.lastname@example.org.
- [By Lisa Levin]
Some of the stocks that may grab investor focus today are:
Wall Street expects Avon Products, Inc. (NYSE: AVP) to report quarterly earnings at $0.10 per share on revenue of $1.62 billion before the opening bell. Avon Products shares rose 2.39 percent to $6.00 in after-hours trading.
Analysts expect MGM Resorts International (NYSE: MGM) to report quarterly earnings at $0.20 per share on revenue of $2.44 billion before the opening bell. MGM shares rose 1.01 percent to $29.90 in after-hours trading.
Cisco Systems, Inc. (NASDAQ: CSCO) reported better-than-expected results for its second quarter and raised its quarterly dividend to $0.29 per share. Cisco shares rose 2.13 percent to $33.52 in the after-hours trading session.
Before the markets open, Dean Foods Co (NYSE: DF) is projected to report its quarterly earnings at $0.41 per share on revenue of $2.01 billion. Dean Foods shares rose 0.49 percent to $20.55 in after-hours trading.
Tripadvisor Inc (NASDAQ: TRIP) posted weaker-than-expected results for its fourth quarter on Wednesday. Tripadvisor shares dropped 5.60 percent to $49.75 in the after-hours trading session.
Analysts are expecting Waste Management, Inc. (NYSE: WM) to have earned $0.77 per share on revenue of $3.42 billion in the latest quarter. Waste Management will release earnings before the markets open. Waste Management shares rose 2.27 percent to $72.97 in after-hours trading.
Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.
- [By Paul Ausick]
Dean Foods Co. (NYSE: DF) fell about 18% Monday to post a new 52-week low of $8.32 after closing at $10.13 on Friday. The 52-week high is $20.10. Volume of more than 12 million was more than seven times the daily average. The company reported poor results and issued a weak outlook.
- [By Lisa Levin]
Tuesday afternoon, the non-cyclical consumer goods & services shares climbed by 0.71 percent. Meanwhile, top gainers in the sector included Weight Watchers International, Inc. (NYSE: WTW), up 17 percent, and Dean Foods Co (NYSE: DF), up 6 percent.
- [By ]
Analysts said the are “now more cautious on names with unfavorable grocer/retailer exposure where we still see downside to estimates (Dean Foods Co. (DF) , downgraded to sell earlier this week) and those losing share within categories/lack of catalysts (PepsiCo Inc. (PEP) ).”
Top Performing Stocks To Buy Right Now: Golden Ocean Group Limited(GOGL)
- [By Ben Levisohn]
StarBulk Carriers (SBLK) and Safe Bulkers (SB) have more than tripled during the past 12 months, while Golden Ocean Group (GOGL) has more than doubled. So it must be time for an upgrade right?
- [By Lisa Levin] Gainers
Sanmina Corp (NASDAQ: SANM) shares rose 15.2 percent to $31.90 in pre-market trading as the company reported stronger-than-expected earnings for its second quarter on Monday.
Cadence Design Systems, Inc. (NASDAQ: CDNS) rose 12.4 percent to $41.30 in pre-market trading after the company posted upbeat Q1 results and issued a strong Q2 forecast.
Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) rose 10.8 percent to $8.75 in pre-market trading.
Mitel Networks Corporation (NASDAQ: MITL) rose 8.8 percent to $11.05 in pre-market trading after the company agreed to be acquired by affiliates of Searchlight Capital Partners for $2.0 billion.
Galectin Therapeutics, Inc. (NASDAQ: GALT) rose 7.3 percent to $3.70 in pre-market trading.
Riot Blockchain, Inc. (NASDAQ: RIOT) shares rose 6.9 percent to $7.00 in pre-market trading after declining 1.50 percent on Monday.
Hallmark Financial Services, Inc. (NASDAQ: HALL) rose 6.5 percent to $10.68 in pre-market trading.
Boot Barn Holdings, Inc. (NYSE: BOOT) rose 5.2 percent to $20.40 in pre-market trading after gaining 4.53 percent on Monday.
New Oriental Education & Technology Group Inc. (NYSE: EDU) rose 5 percent to $91.16 in pre-market trading after reporting Q3 results.
Shire plc (NASDAQ: SHPG) rose 5 percent to $167.98 in pre-market trading after Bloomberg reported that Takeda is nearing a preliminary agreement to acquire Shire after sweetened bid.
Outfront Media Inc. (NYSE: OUT) shares rose 5 percent to $19.00 in pre-market trading.
Geron Corporation (NASDAQ: GERN) rose 4.3 percent to $4.18 in pre-market trading after gaining 5.80 percent on Monday.
SAP SE (NYSE: SAP) rose 3.7 percent to $109.80 in pre-market trading after the company posted strong quarterly results and raised its outlook for the year.
Golden Ocean Group Limited (NASDAQ: GOGL) shares rose 3.7 percent to $8.70 in pre-market trading after gaining 1.45 percent on Monday.
Deutsche Bank Aktiengesellschaft (NYSE: D
Top Performing Stocks To Buy Right Now: Career Education Corporation(CECO)
- [By Stephan Byrd]
Career Education Co. (NASDAQ:CECO) – Equities researchers at Piper Jaffray reduced their Q2 2018 earnings per share estimates for shares of Career Education in a note issued to investors on Thursday, May 3rd. Piper Jaffray analyst P. Appert now expects that the company will post earnings per share of $0.19 for the quarter, down from their previous forecast of $0.24. Piper Jaffray also issued estimates for Career Education’s Q3 2018 earnings at $0.23 EPS, Q4 2018 earnings at $0.29 EPS, FY2018 earnings at $0.95 EPS, Q1 2019 earnings at $0.28 EPS, Q2 2019 earnings at $0.25 EPS, Q3 2019 earnings at $0.29 EPS, Q4 2019 earnings at $0.34 EPS, FY2019 earnings at $1.16 EPS and FY2020 earnings at $1.26 EPS.