Apple Inc (AAPL): Becoming the Next Coca-Cola Company (KO)?

Apple Inc (NASDAQ:AAPL) has had a very established history of enormous growth year after year and has developed a wide-ranging following and loyalty to the brand and to its products. But one analyst made a point that Apple Inc is now conducting stock buybacks, raising dividends and posting a recent stretch of slow, steady growth – all characteristics of something other than a growth company. Could Apple be making the transition into being a blue-chip company, like The Coca-Cola Company (NYSE:KO)?

Apple Inc. (NASDAQ:AAPL)

That was the question being debated during the “Halftime Show” program on CNBC Wednesday, and commentators hada round table discussion about Apple Inc (NASDAQ:AAPL) as a company, and how the stock may perform in the future. One person did not agree with the assessment – at least not yet, saying that he saw the company’s “hypergrowth” continuing at least in the short term, adding that a relatively low multiple (10.8 price-to-earnings) still makes the world’s most valuable company still at a value, especially when compared to blue-chipper The Coca-Cola Company (KO), which is currently boasting a P/E ratio of 18.

You can watch the clip here.

Another commenter on the show wondered about the timing of the analyst note, saying that making such a comparison to a blue-chip like The Coca-Cola Company (NYSE:KO) would have been more viable when the stock was priced at more than $700 per share. He added that “hypergrowth” isn’t really seen at the current $550 level, but he saw a good “earnings story.” The argument focused around whether the market was still here to support growth in excess of 25 percent, or would the growth slow to the 10- to 20-percent level.  But one person on the panel noted that the slow-growth charge was mentioned for Apple Inc (NASDAQ:AAPL) before, after the iPod came out, then again after the iPad, and again after the iPhone – yet the company continued to grow. The questions that were not addressed here, though, were these: Does the deeper and broader competition Apple faces now compared to five and six years ago have the dampening effect on the company’s growth? After all, Coca-Cola has a lot of competition in its markets as well, much of which it didn’t have in the earlier days of its market presence. How about the supply-chain issues that have been prevalent lately? What about the lack of innovation and the continuing intellectual-property litigation around the world – would any of these play a role in the growth of the company?

Are the growth days of Apple Inc (NASDAQ:AAPL)? over, Do you think Apple is now a blue-chip stock, and would you see the stock and company differently as such? Is this analysis going to have some legitimacy going forward, and how will it affect investors like billionaire David Tepper of Appaloosa Management LP and their positions?

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!