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?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies 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!