Sign InApple Inc. (AAPL) Oversold RSI and Positive Analyst Consensus Suggest Potential Price Increase
Summary
Based on technical and fundamental analysis, as well as positive news sentiment and oversold RSI status, Apple Inc. (AAPL) is classified as a Hold for the next trading day and a Buy for the upcoming week, with the anticipation of a potential price increase due to expected positive quarterly results; however, investors should closely monitor news and financial metrics, as broader market conditions and news sentiment can still impact stock performance. (October 26, 2023)
Technical Analysis
Apple Inc. (AAPL) closed at $166.89 on October 26, 2023, showing a change of -4.21 (-2.46%). The last trading day showed a range between a low of $165.67 and a high of $171.38. The share volume was relatively high at approximately 67.52 million compared to the average volume of 58.47 million. Over the year, Apple's stock has seen a high of $198.23 and a low of $124.17, suggesting a relatively volatile period.
The relative strength index (RSI) is 23 which is considered to be in the oversold zone. This could suggest a potential increase in Apple's stock price in the near future. The 50-Day Moving Average stood at $177.21, and the 200-Day Moving Average was at $170.18. These moving averages suggest that the stock is currently underperforming in the short and medium term.
The MACD (Moving Average Convergence Divergence), a trend-following momentum indicator, shows a value of 1.40 for the last three months indicating upward momentum in the near term. The current ATR (Average True Range) sits at 2.00, which indicates the stock's volatility.
No support level is provided, whereas the resistance point is at $177.97, which needs to be breached for momentum to shift upward.
Fundamental Analysis
Apple Inc.'s market capitalization stands at a colossal $2.61 trillion. The company has an Earnings Per Share (EPS) of $5.96, and a Price to Earnings (P/E) ratio of 28, signifying the market's high expectation of future growth. The company has roughly 15.634 billion shares outstanding. It is also important to note that the company's upcoming earnings announcement is scheduled for November 2, 2023.
The consensus analyst recommendation for Apple Inc.'s stock is a "buy," with 23 analysts offering a "buy" recommendation, 9 suggesting to "hold," and only 1 recommending to "sell". The discounted cash flow (DCF) value of Apple's stock is $168.34. Wall Street is setting a high target of $240, a low of $110, and a median of $195, which is much higher than the current price.
The news about Apple Inc. also plays a crucial role.
Prediction and Recommendation
Given the oversold RSI, positive MACD, and analysts' consensus towards a "buy," one could anticipate the stock price to increase in the upcoming trading session on October 27, 2023, and potentially in the week following.
Considering the technical and fundamental analysis, coupled with the fairly positive news sentiment, Apple Inc. (AAPL) can be classified as a "Hold" for the next trading day and "Buy" for the upcoming week. This is based on the anticipation of a potential price increase due to its oversold RSI status and the expected positive quarterly results. However, investors should keep tracking news and other financial metrics closely. Investors should also bear in mind that while the technical analysis tools suggest a potential rebound, the broader market conditions and news sentiment can significantly sway stock performance.
