Apple's Value Remains Abundantly Clear

For those who make their living in technology, and for hundreds of millions of others who use technology daily, this is a moment of reflection.

The death of Steve Jobs brings to the fore his brilliance, his accomplishments and the vital, often beautiful, role that technology has come to play in the lives of so many, all thanks to him. Apple (AAPL), the company he co-founded and then transformed, is among the most admired on Earth, a result of his vision, leadership and creativity.

Apple's market cap is running neck and neck with oil giant Exxon Mobil's (XOM) for the top spot, with both hovering around $355 billion. Considering Apple was floundering, perhaps headed towards the dust heap, when Jobs returned in the late 1990s after having been kicked out a dozen years earlier, this is an amazing accomplishment.

Jobs began his battle with pancreatic cancer in 2004, and in the past couple of years he often looked frail in public appearances. Speculation ran wild about Apple's future without Jobs, and heated up when he announced in August that he would step down immediately as CEO because he could no longer carry out his duties.

Now, the moment no one wanted to face is here: Apple must go forward without Steve Jobs. I do not claim to be a seer, but indications are strong that Apple will continue to be a star performer for at least the short- to medium-term, and very possibly a lot longer. I say this in part because a guru strategy based on the writings of Martin Zweig gives Apple very high grades. If you need more convincing that Apple is and will likely remain a winner, look no further than my Zweig-based analysis. The strategy likes Apple's reasonable price-to-earnings ratio of 14.75, heady revenue growth of 36.6%, earnings growth of 58.2% and zero debt. Not only does Apple have charisma, it knows how to manage its finances. And its stock price, as high as it is, appears reasonable at current levels.

What is most important to remember is that Jobs, an acknowledged visionary, prepared Apple very well for its future. He created a line of products and services that support each other and drive customers to buy more Apple products. His absence will not change this.

Jobs put in place a universally admired team of designers, techies, managers, marketers and executives to drive the company forward for a long time. They are not going anywhere anytime soon. Where would they go? Even without Jobs, what company offers more fertile ground for such talent than Apple? Besides, I suspect most of them will remain loyal to Jobs and Apple, even when he is not there to motivate, inspire or berate them.

Apple is not just performing well, it is performing to a standard few companies have ever matched. The sad and premature passing of Steve Jobs will not change Apple's direction or speed. As has been true for many years, this looks like a good time to buy Apple stock.

At the time of publication, Reese and his clients were long AAPL and XOM, although positions can change at any time.