2 Key Reasons Apple Stock Will Hit $100 Sooner Than You Think

Forget $645: $92 is new reality for Apple (NASDAQ: AAPL  )  stock these days.

After the tech giant's shares split 7-for-1 last Monday, Apple's shares are looking decidedly cheaper to the untrained eye. However, the Apple bull case remains significant and, more importantly, completely unchanged despite the dollar-and-cents differences that are mostly (but not entirely) cosmetic in nature.

So as investors continue to wrap their heads around Apple stock now trading in the double digits, let's look at several key catalysts that I believe will have Apple stock back into the triple digits sooner than perhaps many investors realize.

1. A blowout quarter is in the works
With much of the post-WWDC investing narrative focusing on Apple's second-half product launch cycle, many investors appear to overlooking the here and now for Apple.

That will probably turn out to be a major oversight, as several key indicators have recently suggested that Apple's in the midst of another record-setting quarter. iPhone shipments are trending toward 39 million units shipped in Apple's current fiscal third quarter, well ahead of the current FY Q3 record of 31 million iPhones Apple set last year and starkly higher than the 35 million average estimate that Wall Street's calling for this quarter.

The iPhone shipments figure is an especially important driver of Apple's financial performance, as it's not only Apple's most profitable product but also its largest single source of revenue. So an unexpected boost to iPhone shipments implies a home-run earnings report once again on the way for Apple stock.

2. iPhone 6: An undeniable opportunity
The iPhone 6 has three extremely important variables working it its favor, which will probably make it Apple's most successful iPhone ever.

For starters, Apple's aging installed base of iPhones, as well as the company's move to slowly withdraw support for legacy devices such as the iPhone 4, mean a lot of consumers will probably be ready to pull the trigger on a newer iPhone with the advent of the iPhone 6. This fact, combined with Apple's likely screen-size increases and segmentation into 4.7-inch and 5.5-inch models, also plays into the broader theme of larger screen sizes we've seen play out across the entire global smartphone market in recent years. And lastly, Apple's gone a long way in extending its global distribution footprint, which will position Apple's new handset to be accessed by an entirely new set of consumers when it unveils the iPhone 6. No matter how you slice it, the iPhone 6 presents a potentially historic opportunity for Apple investors.

More catalysts ahead for Apple
These two factors are arguably the most significant short-term catalysts that could propel Apple stock above $100 in the months ahead, but they're by no means the only ones working in Apple's favor. Apple's long-awaited iWatch, as well as any number of the myriad of new product offerings Apple could have in the works, will help create entirely new profit centers for the tech giant. Moreover, each new additional new product offering will further solidify the Apple ecosystem's already massive network effects. Apple's recently unveiled Health app, and upcoming proliferation of wearable-related software, should serve as a healthy reminder of this key fact.

The analyst community appears to be slowly warming to the idea that Apple has plenty of drivers that could push its stock price beyond $100 in short order. Last week, RBC Capital Markets increased its price target for Apple stock to $100, citing many of the same factors I've mentioned here, and I think it's safe to expect more of this behavior from the analyst community in the months to come. So while shares have been on a tear over the past few months, I'm still a firm believer that Apple's recent rally has plenty of room to run in the months to come.

Another way to invest in Apple's iWatch innovation
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2996914, ~/Articles/ArticleHandler.aspx, 10/21/2014 8:27:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,614.81 215.14 1.31%
S&P 500 1,941.28 37.27 1.96%
NASD 4,419.48 103.40 2.40%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2014 4:00 PM
AAPL $102.47 Up +2.71 +2.72%
Apple CAPS Rating: ****

Advertisement