It seems as though every single investor is still in love with Apple Inc. (NASDAQ: AAPL). The earnings report was solid, and the company’s dividend and buyback plan will end up generating $200 billion being returned back to shareholders through time. Apple is the newest of the 30 Dow Jones Industrial Average stocks, and it turns out that Apple also still has the highest expected upside in the year ahead. But does that make Apple the best stock with the most upside of all stocks in the market?
24/7 Wall St. wanted to look at other key stocks in technology and in other sectors to see if there were any solid industry leaders that have more implied upside than Apple. It turns out that there were five easily identified industry leaders that have more expected upside in the year ahead than Apple.
As far as what the implied upside really means, it is the current share price compared to the consensus analyst price target. 24/7 Wall St. did not include the dividends in this upside, because Apple’s dividend, even with the hike, is still far enough under 2% that dividend performance is simply a rounding error.
So, Apple’s current share price of $125.75 would generate an implied upside of 17.5% to the $147.80 consensus analyst target price. That target price keeps rising. Apple shares have sold off more since earnings, and it makes the hurdle for expected upside that much harder. Now to keep the most optimistic outlook in mind, Apple has an official street-high target of $195 for the stock price, which would be 55% upside if that high prediction were to come about, and that is after a gain of better than 50% over the past year.
24/7 Wall St. has highlighted five sector leaders that could outperform Apple if the analysts are right: Alcoa Inc. (NYSE: AA), Facebook Inc. (NASDAQ: FB), Illumina Inc. (NASDAQ: ILMN), Micron Technology Inc. (NASDAQ: MU) and SolarCity Corp. (NASDAQ: SCTY). We have shown what the implied upside to the consensus price target is, as well as to the highest price target for the most optimistic analyst. We have looked at the trading history, the market cap and the performance versus a year ago, and we added in additional color in each company.
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