Topic: Growth Stocks

APPLE INC. $100

APPLE INC. $100 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.5 billion; Market cap: $550.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.apple.com) makes a variety of electronic devices, including iPhone smartphones, Mac computers, iPad tablets, iPod music players and Apple watches. It also sells software, movies and music through its iTunes online store.

The company recently invested $1 billion for an undisclosed minority stake in Didi Chuxing. Similar to Uber, this private firm operates the largest ride-sharing service in China.

The purchase should help Apple gain more insight into China’s fast-growing Internet economy. That’s important because it wants to expand Apple Pay— its mobile payment system— in that country. This investment could also help Apple improve its in-car entertainment and information products.

However, the Chinese government increasingly restricts U.S. firms that compete with domestic companies. For example, it recently blocked consumer access to Apple’s iTunes service.

Apple is a hold.

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