Earnings growth

Apple: The most undervalued large cap stock in the S&P 500

November 28, 2011: 7:15 AM ET

A blogger-analyst highlights the growing gap between its earnings and its stock price

Click to enlarge. Source: Bullish Cross.

"In just four-years," writes Andy Zaky in a passionately worded post published Sunday on his Bullish Cross blog, "Apple's earnings have grown 600% to $27.68, and its revenue skyrocketed 341% to $108.2 billion. That's the most explosive 4-year growth rate of any large-cap company on the entire S&P 500."

Yet Apple's (AAPL) shares closed last week at $363.57 with a price-to-earnings ratio (by his calculation 8.5) that Zaky characterizes as "abysmal."

Why the disconnect? Zaky blames the business press, in particular  CNBC, Bloomberg, TheStreet.com and Business Insider.

"There seems to be an ever-present sentiment-war being waged against Apple as it is constantly hit from all sides in a very concerted way," he writes. With the passing of Steve Jobs, he says, it's only gotten worse.

In an effort to balance the scales, he offers a series of charts contrasting Apple's sales and earnings growth rates with a stock price that has failed singularly to keep up. The chart that shows this most clearly is copied below. To see the rest, click here.

Click to enlarge. Source: Bullish Cross

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