2 tech favorites: Apple, Equinix
These leading stocks are poised for gains through next year.
By 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.
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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Excitement is growing about the company's new iPhone, expected this fall.
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