Apple is Skaffold's hot stock pick


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This week Money asks Skaffold for their hot stock pick - Apple (NASDAQ:AAPL)

Investing shouldn't be about making a quick buck, because more often than not you'll lose the lot. At Skaffold we encourage investors to buy shares in top-notch businesses with strong economics and an impressive future growth forecast. And if you can help it, don't pay an exorbitant price.

With 10-year historical growth averaging 35% and future growth forecast to be around 25% a year, what's not to love about Apple?

Apple shares

iPhone 6 numbers continue to exceed expectations (Androids have come in lower) and Apple's pipeline of innovations will continue to drive its profitability. Apple's cash flow is one of the most impressive in the industry, along with its bank balance.

Skaffold's 2017 valuation target for Apple is just under $US210. If forecasts are achieved, you could be looking at annual share growth of around 27%pa over the next couple of years. Given the flat outlook for the Australian market, 27% doesn't look too bad.

Apple inc
Source: Skaffold

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Alex Dunnin is director of research at Rainmaker Information, publisher of Money magazine, Financial Standard and Selecting Super.