Sign InApple Inc. (AAPL) Forecast: Modest Rise Expected Amid Positive Trends
Summary
On July 07, 2023, Apple Inc. (AAPL) experienced a slight drop in stock price, but the positive trend indicated by moving averages and MACD, as well as growing optimism in recent news, suggest the stock may see a slight rise in the next trading day and throughout the upcoming week, making it a Hold with potential for future growth.
Technical Analysis
Apple Inc. (AAPL) closed at $190.68 on July 07, 2023, a -0.59% drop from the previous trading day. The volume of 44.67 million shares was lower than the average volume of 56.81 million shares, indicating a less active trading day.
The stock price's 50-day moving average was $178.18, and the 200-day moving average stood at $155.16, showing a positive trend in the recent and extended past. The relative strength index (RSI) of 62 shows that the stock is neither overbought nor oversold, given the standard of 70 and 30 as overbought and oversold levels, respectively.
The MACD (3-month), a trend-following momentum indicator, was 4.32, which signals a healthy upward trend.
Fundamental Analysis
Apple Inc's market capitalization was about $3.00 trillion, reflecting its size as one of the world's largest companies. A strong EPS (earnings per share) of $5.97 and a P/E ratio of 31.94 signifies solid earnings and a fair market valuation. The discounted cash flow (DCF) analysis suggested a valuation of $192.13, slightly above the last trading day close.
Apple's year high and low stood at $194.48 and $124.17 respectively, with the last close price closer to the year's high, which can be interpreted as strong performance throughout the year. There are 15.73 billion shares outstanding.
The target consensus estimation is $182.79, indicating that analysts perceive the stock to be currently overpriced. However, expectations are high, with a target high reaching $250.
The upcoming earnings announcement, slated for August 3, 2023, may trigger significant stock movements depending on the reported figures.
Recent News Analysis
Recent news highlights growing optimism for the general stock market and specifically for Apple. Expectations for future growth at Apple are attributed to the increasing installed base, despite recent weak iPhone sales. Investors should consider the risk highlighted in the news relating to interest rates and possible recession.
Stock Performance Prediction
For the next trading day, July 10, 2023, considering the MACD, moving averages, and the general market optimism from recent news, the stock price might see a slight rise. However, the modest drop in the share price on July 7 and the lower-than-average trading volume may limit significant movements.
Throughout the upcoming week, the stock performance might reflect the ongoing positive trend, reflected by the MACD and above-average moving averages. The positivity from the news may also contribute to the upward phase.
Final Evaluation
Looking at both the technical and fundamental analysis along with recent news, Apple Inc. (AAPL) may best be categorized as a "Hold." Despite some analysts viewing the stock as overpriced, the rising moving averages, healthy MACD, and positive news all forecast potential future growth. The upcoming earnings announcement may provide further clarity on the company's outlook.
