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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!