Apple Inc. (AAPL): Here’s What You Should Expect

There are a few likely business catalysts that could help the stock recover further. One of them is getting the iPhone carried by China Mobile, the world’s largest cellular operator with 710 million subscribers. This would help generate significantly more revenue for Apple. Another possible catalyst includes upgraded versions of existing products that could create excitement for consumers. Current Apple Inc. (NASDAQ:AAPL) customers are loyal and some of them insist on having the latest model. Of course, there is the possibility of a new product category being introduced. There have been rumors of an actual Apple television and a wristwatch, but this remains to be seen.

I like to take an objective view and look at where the company currently stands and where it is going. We already know that by standard measures, Apple is undervalued. Therefore, the stock is positioned at a nice starting point. Apple is expected to grow earnings annually at about 21% for the next five years. If these expectations are met, the stock could double the market’s performance over the next five years.

I think that it is likely that Apple Inc. (NASDAQ:AAPL) will find a way to get China mobile as a carrier, giving the company access to many more customers. Although the gross margin has shrunk and may continue to shrink with lower-priced products, I think that ultimately, earnings growth will be the bigger catalyst in the long-term to allow the stock to climb higher.

The article Apple’s Comeback Is Likely to Continue originally appeared on Fool.com and is written by David Zanoni.

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