Apple Inc. (NASDAQ: AAPL) is often considered the king of stocks. Even after the death of Steve Jobs, Apple remains the most valuable company by market cap and shares recently made it back over the prized $400.00 share price. 24/7 Wall St. is looking for implied upside than just Apple… Apple has a consensus price target of about $491.60, implying nearly 23% upside. We wanted to find ten big stocks which are expected to outperform Apple over the next year and we found about 18 that we filtered down to 12 within our criteria.
Some of these stocks are in technology, some are not. Our criteria is to eliminate junk: no companies losing money, no declining earnings, no fresh implosions, no Chinese ADRs, no stuck multi-year turnarounds, and no restructurings that are changing the identity of a company. We also wanted to find companies where analysts still believe that earnings in 2012 will be higher than in 2011, and we eliminated companies in the troubled banking, housing, and auto sectors. We screened out the volatile commodity stocks, used a multi-billion market cap floor, demanded many years of operating history, and even made sure that each stock had 10 or more analysts covering the stock to make sure that consensus was truly a consensus rather than a straw-poll.
The screened stocks expected to outperform Apple are as follows: Caterpillar Inc. (NYSE: CAT); EI DuPont de Nemours & Co. (NYSE: DD); EMC Corporation (NYSE: EMC); FedEx Corporation (NYSE: FDX); General Electric Company (NYSE: GE); Google Inc. (NASDAQ: GOOG); Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR); QUALCOMM Incorporated (NASDAQ: QCOM); SanDisk Corporation (NASDAQ: SNDK); Staples, Inc. (NASDAQ: SPLS); Urban Outfitters Inc. (NASDAQ: URBN); and Walt Disney Co. (NYSE: DIS). A few names with more upside that might immediately come to mind are Netflix, Inc. (NASDAQ: NFLX), OpenTable, Inc. (NASDAQ: OPEN), or First Solar Inc. (NASDAQ: FSLR). Unfortunately, these stocks, even if they do technically have higher implied upside according to analysts, are all under death watch due to a share price implosion. The consensus targets and any earnings estimates are from Thomson Reuters and Yahoo! Finance.