Sign InApple Inc.: A Comprehensive Evaluation of Fundamental and Technical Analysis
Summary
On August 8, 2023, the stock of Apple Inc. closed at $179.80, with a change of $0.95 (0.53%), and despite recent momentum loss, the company's sustainable free cash flows and high-profile endorsements make it a 'Hold' with potential upside, as indicated by the discounted cash flow valuation.
Fundamental Analysis
Apple Inc., with a ticker symbol AAPL listed on NASDAQ, last closed at $179.80 on August 8, 2023, showing a change of $0.95 (0.53%). The company has been one of the top picks in the portfolio of renowned investor Warren Buffett, an endorsement echoed by some bullish news sources.
Apple Inc's annual high and low are relatively far off, at $198.23 and $124.17 respectively, which shows considerable variance in the stock price over the past year. The company's market capitalization stands at a colossal $2.83 trillion. Looking at volume and average volume details, a total of 67.01 million AAPL shares were traded in the last session, which is a bit above the average volume of 56.64 million shares.
The current EPS stands at $5.89 which, with a P/E ratio of 30.53, is indicative of Apple's market premium and investors' willingness to pay a significant amount on the expected future earnings, characteristic of many high-growth companies.
With a heavy total of 15.73 billion shares outstanding and an upcoming earnings announcement on October 25, 2023, investors seem to be optimistic about Apple's sustained ability to increase dividends, thanks to its strong free cash flow. However, some shift in momentum has been indicated following a disappointing quarterly report.
Technical Analysis
The RSI14 standing at 23 may indicate potentially undervalued conditions, a signal that looks promising for those considering entering a long position. Apple's current price finds support at $179.58 and meets resistance at $181.99. Any break through these levels on the up or downside can indicate a significant shift in price direction.
The 50 Day Moving Average at $187.23 and the 200-day Moving Average at $160.19 show an overall bullish sentiment in a more extended timeline, although the recent curtailment in momentum could be a concern. The MACD 3-month value is at 1.31, suggesting a bullish trend. The ATR comes in at $1.87, shedding light on current market volatility.
Stock Price Prediction
With the discounted cash flow (DCF) at $181.25, Apple's fair value seems to be marginally higher than the current price which suggests potential upside. Consensus estimates offer a target range from a high of $240 to a low of $110, and median at $192.50, lending a positive outlook, though also highlighting the considerable spread of opinions.
For the next trading day on August 9, 2023, AAPL might trade around the DCF at $181.25, provided no stark changes in underlying fundamentals.
Over the upcoming week, the stock price might hover closer to the 50-day moving average of $187.23, unless changes in market conditions direct the price otherwise.
Final Evaluation
Considering both the fundamental and technical aspects, along with the stock's noteworthy affiliation to a high-growth, dividend-paying tech giant, Apple's stock may be considered a 'Hold.' Despite recent momentum loss, the company still has sustainable free cash flows and investor trust, as underlined by high-profile endorsements. While the current low RSI may attract bargain hunters, the technical prediction suggests a cautious approach. Overall, the stock can be evaluated more positively upon continued monitoring.
