Sign InApple Inc. (AAPL) Shows Resilience and Positive Outlook, Categorized as a 'Buy' Investment
Summary
Based on a fundamental analysis and technical indicators, Apple Inc. (AAPL) is seen as a fundamentally strong stock with a positive outlook, and it is recommended as a Buy investment, with a price prediction of $195 for the next trading day on July 25, 2023. (Date of analysis: July 24, 2023)
Fundamental Analysis
Apple Inc. (AAPL) is currently trading at $192.75 with a modest increase of $0.81 (0.42%) from the previous close. The tech giant possesses a robust financial architecture reflected by a significant market cap of $3.05 trillion.
Apple's Year-high and Year-low stand at $198.23 and $124.17, respectively. The stock's current price is leaning towards the high-end of the spectrum, indicating resilience in performance over the past year. Its Price to Earnings (PE) ratio, at 32.9, is moderately high but not unusual for a tech firm investing heavily in innovation and growth.
The Earnings Per Share (EPS) currently is $5.89, reflecting the company's profitability. Its next earning announcement will be on 08/03/2023, a significant date that could introduce volatility into the stock's price.
Regarding stock movement, the 3-month MACD stands at 2.90, suggesting more buyers than sellers in recent months. Furthermore, both the 50-day moving average ($183.57) and the 200-day moving average ($157.71) are below the current price, indicating a positive trend.
The above-average trading volume of 15.15 million shares indicates a high investor interest. In contrast, the Relative Strength Index (RSI) stands at a neutral 51, suggesting that the stock is neither overbought nor oversold at the present time.
Technical Analysis and Price Forecast
The price prediction based on the Discounted Cash Flow (DCF) model presents a value of $195.23, slightly above the current market price. Additionally, the consensus target is $184.12, with a high target of $250 and a low of $110. These considerably wide-ranging targets signal differing investor perspectives on the company's future.
Considering the bountiful first half for tech firms, as stated in related news, and Apple's continuous investment in innovation—most notably its push into AI leading to a remarkable $71 billion increase in its market cap—we foresee a positive outlook for the stock. The anticipation of the Federal Reserve's decision on interest rates could also impact the stock.
However, potential challenges loom, highlighted by the French antitrust watchdog's objections against Apple's user data advertising practices.
Final Evaluation and Recommendation
Balancing the fundamental factors and technical analysis, AAPL is seen as a fundamentally strong stock with a positive course. The company's consistent innovation and financial robustness buffer against minor setbacks like the recent antitrust issue.
For next trading day on July 25, 2023, and the coming week, based on DCF evaluation, the price is anticipated to hover around $195.
Given its current market price, robust financials, and the positive outlook, we categorize AAPL as a Buy investment. Nonetheless, investors should keep a close eye on upcoming news and earnings reports, considering their potential to introduce volatility.
