2 tech favorites: Apple, Equinix

These leading stocks are poised for gains through next year.

By TheStockAdvisors May 3, 2013 9:35AM

Money and computer © Angel Muniz JupiterimagesBy Stephen Quickel, US Investment Report


The market, in our view, remains basically bullish as the economy continues to improve and corporate earnings continue to grow -- especially at our kind of sector-leading growth companies. We see stocks continuing to rise through 2013 and well into 2014.


In the technology sector, it's time to take a serious look at Apple (AAPL) and Equinix (EQIX).


For Apple, the $700 peak of last fall was doubtless over-inflated. And while Samsung has given Apple stiff smartphone competition, AAPL is selling iPhones and iPads by the jillions.


And it just unveiled a massive stock buyback program that will return $100 billion of cash to shareholders by 2015.


Apple remains a vibrant company growing earnings at 15% a year and trading at seven times forward earnings. We can see a move to $500.


Meanwhile, Equinix is particularly intriguing. When we discovered it in 2010, Equinix was busy creating, at great up-front expense, a global platform of data centers that today has attracted over 4,000 user companies.


The stock rose from below $90 to over $220 this February, a three year gain of 143%. Since then, EQIX has been treading water around $210-$215, even as revenues and earnings keep growing -- stalled largely by concern over its 40-plus price-to-earnings ratio.


With consensus earnings estimates slated to rise from $3.62 to $4.78 per share this year and to $8.09 in 2014, we have upped our six- to 12-month price target from $240 to $250.


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