Apple Inc. (AAPL): A Champion Investment?

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Take the Maxim Group’s initial coverage of the stock early in March, when it rated Silicom Ltd. (NASDAQ:SILC) a Buy. At the time, Silicom was trading at about $27 per share. Since then, Silicom reported another stellar earnings report where first-quarter year-over-year revenue increased by 49%, representing nearly $5 million in additional earnings in a single quarter. Not bad for a company worth just over $215 million.

So what does Silicom Ltd. (NASDAQ:SILC) need to do in order to be in the ranks of Apple Inc. (NASDAQ:AAPL) and The Coca-Cola Company (NYSE:KO)? Two things: sell a product high in demand, and have the ability to dominate the market. The networking servers and components sector has a heap of competition, but Silicom offers its innovative, high-speed products for an affordable price. That tells me this company has a solid chance of landing on top. And with companies continually streamlining productivity, the efficiency of networking servers is increasingly important. As a momentum player, I’m going to hold onto this stock.

The article The Search for a 20-Bagger: Could This Company Be Next? originally appeared on Fool.com and is written by Phillip Woolgar.

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