3 expensive stocks worth every penny

Look past the high prices for potential earnings.

By InvestorPlace Jul 27, 2010 9:44AM

Credit: (© Paul Sakuma/AP)
Caption: Apple CEO Steve Jobs holds the new iPhone 4By Louis Navellier, InvestorPlace.com


High-priced stocks are certainly not right for every investor, but for those who are willing to dive into pricey shares, it’s important to know if the risk will be worth the reward. With the right pick, a solid outlook can translate into a high-value investment.


Here are 3 stocks with shares trading well into triple digits that would not surprise anyone with a steady rise in current asking price in the days to come.



Apple: It’s easy to see why Apple (AAPL) is leading the tech revolution, from digital media distribution to smart phones to personal computing. The colossal success experienced with its iPhone and iPad sales kept this industry-leader riding high this past quarter, with record revenues and 78% earnings growth for Q3.

A stock with a history of stellar performance for its shareholders, EPS trend estimates for Apple appear to be only looking up for the next year or more. Apple shares are a conservative risk, but with a cult following such as the one it has amassed, the consumer demand will likely keep AAPL healthy for the foreseeable future. (Related Article: iPad Frenzy Hits Asia)

Amazon: Amazon (AMZN) started as Earth’s biggest bookstore, but has rapidly become the planet’s biggest anything store. Relentless expansion has propelled Amazon.com in countless directions in the quest of bigger sales and profits. With the growing popularity of digital readers, Amazon has reaped the rewards with its Kindle, which has exceeded its e-book sales numbers from this time last year by more than 200%.

With quarterly sales growth in Q2 of 41%, and estimates for Q3 between 27% and 40%, AMZN stock may be a lot of weight out of the wallet, but it is a moderately aggressive risk if it continues to perform well in such a highly competitive and quickly evolving market. (Related Article: Amazon ebooks outsell hardcover titles)


Netflix: Netflix (NFLX) is a movie rental company that has developed an ingenious business model built around the idea that individuals don’t want to leave their houses in order to rent a movie. Wall Street severely is underestimating this stock’s growth potential.

The company had an excellent first quarter, posting a 25% year-over-year growth from the same period in 2009, and although revenue during Q2 didn’t live up to analysts’ expectations, thew company still beat earning estimates.

Netflix should continue to expand in the months ahead, with plans to offer subscription services in Canada as its first step toward international growth. Buying shares in this industry visionary might be a calculated risk that could give back big. (Related Article: Netflix goes global with streaming in Canada)

For my complete list of 5 expensive Stocks Worth Every Penny, follow this link.

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