Things are turning around for one of the largest companies in the world…

After falling 11% in the first half of September, Apple (Nasdaq: AAPL) has rebounded from its monthly low of $450 a share.

Before the rally, shares of Apple were down due to market concern that demand for the company’s flagship product line — the iPhone — was dwindling. Adding to the panic were analyst fears that the company’s newest additions to the iPhone arsenal, the iPhone 5s and iPhone 5c, were neither cheap enough nor different enough to attract new customers.

Those analysts were dead wrong.#-ad_banner-#

In the weekend debut of the company’s new iPhones, Apple sold a record 9 million phones. Even the loftiest of predictions didn’t expect the company would sell any more than 8 million. The announcement spurred a 4% rally in Apple stock on Monday, a day when the S&P 500 was down 0.3%.

But even after the rally, there are still plenty of reasons we’re bullish on Apple.

For starters, with a profit margin of 22%, Apple is without a doubt one of the most profitable companies among the tech giants. By comparison, Google’s (Nasdaq: GOOG) profit margin is 20%, IBM’s (NYSE: IBM) is 15%, and Sony’s (NYSE: SNE) is a mere 1%. Those thick margins helped Apple collect 53% of all the global profit in the $280 billion smartphone market last quarter.

What’s more, despite the naysayers, the company is still growing… and quickly. In the first quarter of 2013, Apple reported record revenue of $54.5 billion, up 17.7% from the year-ago quarter. While second-quarter growth wasn’t as strong, the company still managed to increase sales 11%.

One of the catalysts supporting Apple’s growth right now is China — the world’s largest mobile market. With a population of 1.3 billion and a smartphone penetration rate of just 16% (only 16 out of 100 people own smartphones), the People’s Republic represents a huge opportunity for Apple. And the company is already starting to take advantage of it.

For the first time in the corporation’s history, Apple released its new iPhones in China the same day it released them to the rest of the world (usually, there’s a three-month delay). As evidenced by the company’s record-setting weekend, this plan clearly worked.

As further proof of Apple’s commitment to increasing its market share in China, Apple has also been working on an agreement to make iPhones available to China Mobile’s (NYSE: CHL) wireless customers. This is a big deal. With roughly 70% of the Chinese cellphone market, China Mobile has over 700 million users — more than double the size of the U.S. population. If Apple can strike a deal with China Mobile, this could potentially unlock millions of new customers for the iPhone maker.

Yet despite these positive tailwinds, shares of Apple are dirt-cheap… even after the recent rally.

As of today’s close, Apple was trading near $490. With trailing 12-month earnings of $40.36 per share, the company is trading at a price-to-earnings (P/E) ratio of just 12.1. That’s a 37% discount to the S&P 500 index’s P/E of 19.2 and significantly less than the P/E ratios of rivals Google (25.3), Sony (25.7) and IBM (13.6).

This is exactly the kind of opportunity my colleague Elliott Gue looks for in his premium newsletter, Top 10 Stocks. Apple’s cheap valuation, big competitive advantages, thick profit margins and 2.6% dividend yield could make its shares a valuable addition to anyone’s portfolio.

Could Apple become the largest bank in America?
But fundamentals aside, there’s another reason our analysts here at StreetAuthority are watching Apple very closely right now, and I doubt you’ll hear about it from any of the major media sources…

In a recent report, “The Hottest Investment Opportunities for 2014,” my colleague Andy Obermueller makes a bold prediction about Apple’s future. He recently told his Game-Changing Stocks subscribers that Apple is about to become one of the largest “banks” in America.

As Andy explains in a recent issue of StreetAuthority Daily:

“I predict that within the next 12 months, Apple will create a new currency called ‘iCash’ and become the largest ‘bank’ in America.

“The company is already quietly moving in this direction by acquiring smaller firms with patents on top-of-the line technology that could help make ‘iCash’ real.

“Remember, Apple has a history of transforming technology into something you can use every day. And I think the company has the best shot of creating the ‘It’ product when it comes to mobile payments.”

While Andy’s prediction might sound a bit far-fetched, mobile payments are already gaining in popularity. According to market research firm Gartner, people use their cellphones to buy more than $171 billion worth of goods every year. That number is expected to increase about 250% by 2016.

If history is any guide, these mobile-based transactions are just child’s play compared to what we’ll be doing in the years ahead. With Apple’s stronghold in the smartphone market and nearly $43 billion of cash on its balance sheet, it is without a doubt one of the best positioned companies to take advantage of this growing trend.

This Tiny Stock Gained 60% In 14 Months
But while Apple is likely to be a winner if (and when) mobile payments become the norm, Andy believes the real money will be made investing in the companies needed to make this technology mainstream.

One such company is NXP Semiconductors (Nasdaq: NXPI), a global leader in the field of computer chips that help devices identify and communicate with each other. It’s a technology known as near-field communications, which enables any two devices that are near each other to talk to one another.

Andy brought NXP to the attention of his Game-Changing Stocks subscribers in July 2012. Since his recommendation, the stock has surged more than 60%.

So far, near-field chips have been a booming business for NXP, growing 19% in 2011 and 41% in 2012, and is on track to grow 30% this year (to $1.26 billion), according to analysts at Merrill Lynch. These ID chips made up just 16% of NXP’s $4 billion revenue base in 2011 but are expected to account for 35% of sales by 2015.

If Andy’s prediction comes true and mobile payments keep growing at triple-digit rates, NXP could double its profits in a few short years — and the stock could keep soaring.

P.S. Only time will tell if Andy’s prediction comes true or not, but given his track record for predicting “game-changing” events — especially when it comes to Apple — I wouldn’t bet against him. In 2012, when Apple was at $720, Andy predicted its “fall from the market’s grace.” Shortly after, shares fell 39%. To learn more about Andy’s latest Apple prediction, or to see the rest of his “shocking” forecasts for the coming year, follow this link.