Apple's shares have soared nearly 40 percent during the past year, and star mutual fund manager Bill Miller doesn't think the party is over.
Miller, former chairman of asset managing firm Legg Mason Capital, is now chairman of money manager LLM. As for Apple, "it's not as attractive as it once was, but I still think it's worth $700, $750,"
Miller tells CNBC.
Apple reached a record high of $705 in September 2012 and then fell to $392 the following April before rebounding. The stock rose $1.60 Wednesday to close at $606.31, with its 52-week high at $607.33.
Editor's Note: 18.79% Annual Returns ... for Life?
Morningstar analyst Brian Colello has a more tempered view of the stock, with a fair value estimate of $600.
"Although Apple has a sterling brand, robust product pipeline and ample opportunity to gain share in its various end markets, short product life cycles and intense competition will prevent the firm from resting on its laurels or carving out a wide economic moat," he writes on Morningstar.com.
Meanwhile, Miller remains bullish on stocks overall. "It's a great market, I think, for people who actually want to invest who have a time horizon longer than the next 30 minutes to three weeks."
Both the S&P 500 and Dow Jones Industrial Average stand within 1.5 percent of their all-time peaks.
Among other stocks Miller favors is Amazon.com. The stock's recent decline makes it good value, he argues. "If it takes Amazon two years to get back to where it was a few months ago that should beat the market," Miller notes.
Amazon closed Wednesday at $305.01, down 25 percent from its record high in January.
Miller is also bullish on homebuilders, noting that the fundamentals for this sector are improving.
"Almost all the homebuilders, the ones we own, trade at below market multiples on this year's numbers [and] way below on next year's numbers. They have earnings growth much faster than the overall market," he states.
He is also a fan of auto stocks, calling them "very cheap." Miller believes the large number of recalls happening will not impact demand for automobiles in the next few years.
"Unless there's actually a contraction in auto demand or if GM were to lose market share on a more permanent basis, that would be cause for concern," he explains.
Editor's Note: 18.79% Annual Returns ... for Life?
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