Apple Inc. (AAPL), RF Micro Devices, Inc. (RFMD): Three Predictions for Next Week

I’m going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery. Yes, last week’s earnings reports were rough out of some of the big names in the index, but the long-term outlook is still quite favorable.

The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI).

3. RF Micro Devices, Inc. (NASDAQ:RFMD) will beat Wall Street’s earnings estimates

Some stocks are just flat-out better than others.

RF Micro Devices, Inc. (NASDAQ:RFMD) is a chipmaker that’s fared well in getting its smartphone chips into devices of the world’s two biggest players in this growing space. Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $0.07 a share in its latest quarter, I’ll argue that it held up better than that. History’s on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let’s go over the past year of earnings reports.

Quarter	EPS Estimate	EPS	Surprise
Q1 2013	$0.01	$0.01	0%
Q2 2013	$0.01	$0.03	200%
Q3 2013	$0.08	$0.06	33%
Q4 2013	$0.05	$0.06	20%

Source: Thomson Reuters.

Things can change, of course. We’ve seen reports of weakening demand for iPhones and Samsung devices. Wall Street also may seem to be a bit aggressive in targeting 42% top-line growth for RF Micro Devices, Inc. (NASDAQ:RFMD) in its latest quarter.

However, it’s hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let’s see how I fare this week.

The article 3 Predictions for Next Week originally appeared on Fool.com is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple and Intuitive Surgical.

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