Apple Might Be a Trillion-Dollar Company, but Its Stock Is Still a Bargain

Apple might have a record-shattering market cap, but you can still own a slice of it for a thievishly low price. Plus, the company is a moneymaking machine, which means you can tap into its supply chain for even more explosive profits...

After Apple Inc. (Nasdaq: AAPL) became the first company to achieve a trillion-dollar market cap on Aug. 2, many investors felt as though they'd missed out on one of the most historic run-ups in Wall Street history.

But they're just missing the bigger picture.

Even after breezing through this historic marker, the company is trading well below the inflated metrics of its peers and the market as a whole.

apple stockAnd the tech giant is just getting started. Over the last year, Apple has quietly begun to streamline its supply chain, cutting costs and incorporating new suppliers.

This streamlining is putting millions of dollars in the pockets of small companies, which now have a vital role in producing some the world's most popular products. And it's going to generate immense returns for Apple's shareholders.

We've identified a little-known company that Apple has handpicked to produce a crucial part of Apple's mobile devices.

It's a firm that's behind the tech that makes the iPhone and iPad touch screens possible - and its earnings are set to jump 200% as Apple tightens its belt and maximizes shareholder returns...

Apple Is Still Incredibly Cheap

With a price/earnings ratio of 18, Apple is trading at an unbelievably low value compared to its industry peers.

Microsoft Corp. (Nasdaq: MSFT) currently has a P/E ratio of 50 - nearly three times that of Apple. Alphabet Inc. (Nasdaq: GOOGL), Google's parent company, currently holds a 52.

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And Netflix Inc. (Nasdaq: NFLX), the company's main competitor in the development of streaming content, has a P/E ratio of 155 - despite having a market cap nearly a ninth the size of Apple's.

Apple's low valuation is one of the reasons the company has room to grow. And when you factor in Apple's potential growth, the stock is an even better buy.

That's why Money Morning Defense and Tech Specialist Michael Robinson has a short-term price target of $250 on the company.

"Many on Wall Street doubted my new forecast, saying the iDevice King was suffering from a smartphone sales hangover," Michael told us. "But my $250 price prediction took into account that the company is moving quickly to improve sales of services like Apple Music and away from its dependence on devices."

While Apple expands its lucrative service offerings, Michael says the iPhone is still a profit machine...

"And Apple really delivered when it announced second-quarter 2018 earnings on May 1. Yes, smartphone sales volume slipped a bit, but the company more than made up for that with sales of the higher-margin iPhone X."

Looking at Apple's current financial health, Michael is spot on. According to Apple's recent earnings report, the company has increased its year-over-year revenue by over 37%.

Much of this earnings growth came from Apple's investment in the company's content services like Apple Music or the App Store and generates significant returns for the company - in 2017, the App Store alone generated $40 billion in revenue.

With over 1 billion Apple devices in daily use, the traction this ecosystem provides ensures that the company will have dependable returns regardless of market conditions.

With these kind of returns, Apple is more than likely to hit Michael's $250 price target in the near future. From today's price of $200, that's a gain of 25%.

That's a great return, and Apple stock is one of the best buys you can make. But you can crank up your returns by nearly eight times that amount.

You see, Apple's immense resources also give the company the ability to streamline its production - something the company has pursued aggressively for the last year.

Our Apple profit play has benefited directly from these efforts.

As a supplier of the cutting-edge screens used on the iPhoneX, this supplier is on the front lines of the products that will drive Apple's growth - and profits.

Plus, it boasts a potential 200% share-price gain if you get in now...

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Universal Display Corp. Is Apple's Backdoor Profit Play

Universal Display Corp. (Nasdaq: OLED) is the world's lead manufacturer of OLED displays.

OLED stands for "organic light-emitting diode" and is quickly replacing the standard LCD displays that were once ubiquitous in nearly all digital devices.

Apple originally tapped Universal to use its display technology in the iPhoneX - Apple's first iPhone to make the phone's entire front panel a touch display.

Thanks to the success of the iPhoneX's design, Apple is likely to expand this feature across its range of iPhones - and with it, Universal's OLED technology.

In addition to supplying OLED tech to Apple, Universal's displays can be found in Samsung's Galaxy phones and tablets. These devices generate their fair share of profits - the OLED-equipped S3 and the Galaxy Note have each sold more than 10 million units.

In fact, OLED tech is sweeping across the smartphone industry - according to ResearchAndMarkets.com, the global OLED market is set to expand from $16.58 billion in 2016 to $48.81 billion by 2023.

That's a 194% jump.

And Universal's critical role in providing OLED screens put it on the front lines of this expanding market.

According to FactSet, nine out of 10 analysts rate Universal a "Buy," giving the company an average price target of $148.22 - a gain of 79% from its current price.

However, it's clear this stock can go even higher.

You see, Universal's sales rose $335.6 million last year, up from $198.9 million in 2016.

It's more than 21 times what the company was generating in 2009.

Net income was up 116% in 2017 from the year before and up nearly 600% from two years earlier.

Earnings growth has been just as staggering. UDC's earnings per share more than doubled from $1.02 to $2.43 last year, and it's projected to shoot up to $6.18 by 2021.

That's a 200% gain in earnings in just two years - a spectacular return for an investment.

Buying Universal today can get investors in on the ground floor of a stock with tremendous earnings potential - and the returns that will come with it.

However, that's not the only profit play we're looking at right now...

The Gains on This One $10 Stock Alone Could Earn You Enough to Retire

A paradigm-shifting technology could disrupt every major industry, and one tiny company is at the center of it all.

It recently inked four major deals... BlackRock has snatched up 29 million shares... and its technology could be adopted by millions around the globe.

Best of all, this stock trading for less than $10 could deliver a 471.9% gain for early investors.

Click here now for details...

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