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Apple Inc. (AAPL) Technical Analysis & Fundamental Outlook: June 10, 2024

StockInvest.us, 1 week ago

Apple Technical Analysis

Apple Inc. (AAPL) closed at $193.12 on June 10, 2024, marking a decline of 1.91%, or $3.77, from the previous close. The stock experienced a relatively wide range during the trading session, with a low of $192.15 and a high of $197.28. The stock is hovering near its year high of $199.62 and significantly above its year low of $164.08, indicative of overall positive momentum over the past year.

The market showed heavy trading volumes, with 95.29 million shares exchanging hands, notably higher than the average volume of 60.23 million shares. The Relative Strength Index (RSI14) sits at 54, indicating a neutral position without being overbought or oversold.

Short-term signals demonstrate mixed indications. Apple's 50-day moving average stands at $179.53, and its 200-day moving average is at $181.73, both reflecting an uptrend considering the stock’s current price. The Moving Average Convergence Divergence (MACD) of 5.34 continues to signal bullish momentum. However, the Average True Range (ATR) of 1.62 suggests moderate volatility.

Resistance sits at $194.03, just above the last close, while support is at $183.38. The stock’s stop-loss, calculated at $186.81, provides a yardstick for risk management.

Fundamental Analysis

From a fundamental perspective, Apple Inc. maintains robust financial health with a colossal market capitalization of $2.96 trillion. The company’s EPS of $6.44 and PE ratio of 29.99 imply a mature growth profile with considerable profitability relative to its share price. Despite the day’s decline, news highlighted Apple's innovative stride in AI, posing a strategic growth driver pertinent to future performance, notably with partnerships and new AI features intended to boost iPhone sales.

Looking ahead, Apple has an upcoming earnings announcement on August 1, 2024. The analyst community reflects mixed sentiments with one strong buy, 25 buys, eight holds, two sells, and no strong sells, leading to a consensus of 'Buy.' Price target projections range from a high of $275 to a low of $110, with a consensus target around $193.36, which is aligned with the current price.

Apple DCF valuation estimates Apple's intrinsic value at approximately $136.67, suggesting the stock is currently trading above its intrinsic value.

Predictions

For the next trading day (June 11, 2024), considering the recent decline and close near resistance, the stock may face modest headwinds or sideways movement as investors digest the latest announcements from WWDC and the overall market conditions.

For the upcoming week, driven by positive feedback from the WWDC innovations in AI, a bullish trajectory may persist with potential consolidation near resistance levels before attempting to break higher.

Intrinsic Value and Long-Term Investment Potential

Despite the disconnect between the DCF intrinsic valuation of $136.67 and the current market price, Apple's extensive inroads into AI and historical efficiencies bolster optimism for its long-term investment potential. The PE ratio maintenance suggests that the market prices in Apple’s growth prospects and strong brand equity.

Overall Evaluation

Considering the technical indicators, current market position, and fundamental outlook, Apple Inc. positions itself as a strong candidate for 'Hold.' The stock experiences bullish technical support and robust long-term potential driven by strategic initiatives in AI, albeit at a premium valuation relative to its DCF estimate. A ‘Hold’ stance is prudent, allowing market participants to observe further confirmation of positive momentum and sustained growth catalysts.

Check full Apple forecast and analysis here.