Sign InApple Inc. Expected to See Increase in Stock Price Amid Positive Momentum and Earnings Announcement
Summary
Based on technical and fundamental analysis, as well as recent news and market sentiment, it is predicted that Apple Inc. (AAPL) stock will increase in the next trading day and upcoming week, making it a good investment option with its strong market capitalization, P/E ratio, EPS, and upcoming earnings announcement.
Technical Analysis
Apple Inc. (Ticker: AAPL) saw a decrease in its closing price by -1.55% on August 2, 2023, registering at $192.58. This also marked a downtick from its day's high of $195.17, with a slight drop below its bargaining low of $191.85. However, this price fluctuation is within its 52-week range of its year low and high being $124.17 and $198.23, respectively. AAPL's stocks have consistently been moving around its 50-day moving average of $186.19 and more robustly upward from its 200-day moving average of $159.30 reflecting a positive market sentiment over a midterm period.
The Relative Strength Index (RSI), currently standing at 55, indicates the stock is neither overbought nor oversold. Further, with a MACD (3-month) of 1.97, it reflects the continued bullish sentiment for Apple stock in the short term.
Fundamental Analysis
Apple Inc. has a strong market capitalization standing at $3.03 trillion. This speaks volumes about the company's value and stability in the marketplace.
The company has maintained a healthy P/E ratio of 32.7, which is a reflection of the confidence investors have in the company's ability to generate consistent profits. This is backed by the company's solid EPS of $5.89, further solidifying its fundamental strength. The company's trading volume for the current period is 49.65 million, a little shy of the average trading volume of 56.49 million, which can be attributed to market factors.
Noteworthy is the company's next earnings announcement on August 3, 2023. Current statements indicate a prediction of an uptick in iPhone revenues, likely boosting investor sentiment even further.
Company News
Among recent, key company news, the fact that Apple has amassed upwards of $10 billion in deposits for its savings account since it debuted in April 2023 with Goldman Sachs Group Inc., speaks to its ability to innovate and tap into markets beyond its well-established technology base.
The expectation of a revenues boost in the coming third quarter, particularly from iPhone sales, suggests robust financials in the near future. There's also an 'Outperform' rating on the stock offered by Wedbush Securities, with a 12-month target price of $220, signifying a strong growth potential for the stock.
Prediction and Conclusion
Using the provided data and recent news, the expected stock price for the next trading day on August 3, 2023, would be above the last closing price of $192.58 in light of the upcoming earnings announcement. Looking at the current momentum and news sentiment, the stock price for the upcoming week is expected to increase.
Given the above technical and fundamental analysis, taking into account the bullish market sentiment, strong P/E ratio, solid EPS and the upcoming earnings announcement, Apple Inc. is assessed as a Buy. Further, its continuous capacity to innovate and diversify its revenue sources reaffirm Apple's position as a robust and future-ready player in the tech market. However, sustained vigilance is advisable considering market volatility and global economic cues.
