Up 2% today with the introduction of the iPhone 5 from Apple (NASDAQ: AAPL), Sprint-Nextel(NYSE: S) has more than doubled for 2012. Of great importance is that Sprint-Nextel is now over the $5 mark, which makes the stock much more attractive for a variety of factors. It was only last October that Sprint-Nextel plunged due to a disastrous press conference. Since that, the stock has soared.
Sprint-Nextel still has a lot of problems, but hooking up with Apple and the iPhones is covering many of the mistakes. This year, earnings-per-share growth has increased by 16.79%. For the next year, earnings-per-share growth for Sprint-Nextel is projected to soar by 43%.
Sprint-Nextel should continue rising thanks to the iPhone 5 wave from Apple. In addition to the strength of the Apple marketing machine with a new production introduction, the peak season for high tech stocks is approaching. Due to holiday shopping for consumer electronics, the fourth quarter is also robust. You can bet that the iPhone 5 will on the shopping list of many for this season.
While soaring in price, Sprint-Nextel is still not profitable. Even with the stock surge, the price-to-sales ratio is a very attractive 0.44. There is also plenty of cash on the balance sheet. Another bonus for the Sprint-Nextel is its attractiveness as a takeover target.
As the third largest carrier, it is the most viable as an acquisition candidate. Last year, AT&T made a run at T-Mobile USA for $39 billion. The present market capitalization for Sprint-Nextel is $15 billion, so it is cheaper and offers better service. The $15 billion would be pocket change for an Apple, Google or Samsung looking to expand its business operations.
As demonstrated by the share price rise for 2012, Sprint-Nextel has a great deal of value for individuals or companies looking for an attractive buy.
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