2 Stocks to Buy on the Waning Dominance of Apple Inc. (AAPL)

The fast growing company is only valued at a $1.2 billion market cap and trades at less than 20 times forward earnings estimates. Analysts forecast revenue growing nearly 30% next year, suggesting the stock trades at a cheap valuation considering a deal with Apple could easily juice those results.

Conclusion

While Apple has become a compelling valuation trading at less than 10 times forward earnings with a huge cash hoard, the waning dominance by the previously largest stock in the world provides opportunities for other technology stocks. The fund flows will look for other technology stocks that will include appealing stocks such as Nuance and InvenSense.  Not only could these current and potential suppliers of Apple obtain better margins, but also investors might apply higher multiples to these growth stocks previously ignored by the Apple investment machine.

The article 2 Stocks to Buy on the Waning Dominance of Apple originally appeared on Fool.com and is written by Mark Holder.

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