July 25 (Reuters) – Shares of tech giant Apple Inc (AAPL.O) and software company Microsoft Corp (MSFT.O) are still worth buying, Barron’s said in its July 26 edition.
Despite the tepid margin outlook for the current quarter and the fact that Apple’s stock has nearly tripled over the past 18 months, Apple shares are still attractive, the financial newspaper reported.
“Apple remains the best growth story anywhere, it really isn’t expensive, the economic downturn didn’t slow it one iota and it deserves a place in every tech portfolio,” Barron’s said in its “Technology Trader” column.
The newspaper recommended shares of Microsoft, citing its “blowout” results in the latest quarter and its upcoming initiatives, including the roll-out of the first smartphone using the new Windows Phone 7 OS, and the debut of Kinect, the new hands-free interface for the Xbox 360 game console.
Like Apple, Microsoft has an enormous cash pile, the newspaper pointed out, adding that Microsoft’s shares are “super cheap.”
At around $26, Microsoft stock trades for just 11 times the Street consensus forecast for the June 2011 fiscal year, a consensus number that seems destined to rise, the paper said. (Reporting by Dhanya Skariachan, editing by Maureen Bavdek)