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Apple Inc. Outlook: Technical indicators point to short-term pressure, but solid fundamentals offer growth potential

StockInvest.us, 2 months ago

Apple Technical Analysis

Apple Inc. (AAPL) closed at 174.21 USD on September 13, 2023, a 1.19% downturn from the previous close, with a trade volume of 83.92 million shares compared to an average volume of 56.90 million shares. The stock is currently trading near the lower end of its 52-week range between 124.17 USD and 198.23 USD. The stock's slide in recent days has led to a 41 RSI14, indicating that AAPL is neither overbought nor oversold.

The stock's 50-day moving average stands at 185.73 USD, which is above the current price, indicating a bearish short-term trend. However, the long-term trend represented by the 200-day moving average (164.33 USD) is still bullish since it's below the current price. Notably, the stock closed only slightly above its support price of 174 USD, suggesting a downside risk. The immediate resistance level is 177.56 USD, which would require a 1.92% upside to reach.

The MACD stands at 0.77, which can be seen as a positive signal, indicating upward momentum. However, the ATR of 2.18 indicates the stock’s price volatility has been relatively high, which risky investors might find appealing.

Fundamental Analysis

Apple Inc. has a large market capitalization of $2.72 trillion with 15.63 billion outstanding shares. The company's P/E ratio is 29.23, suggesting that investors are paying 29.23 USD for every 1 USD of earnings, which is relatively expensive concerning industry peers. However, Apple has a robust EPS of 5.96 USD, and it continues to be a significant player in its field, posting consistent growth year over year.

The analyst consensus labels Apple as a "Buy", with 22 analysts recommending a "Buy", 10 recommending to "Hold", and only 1 recommending to "Sell". The DCF of 175.66 USD, marginally above the latest close, indicates that the stock is fairly valued.

The targets set by analysts range from 110 to 240 USD, with a median target of 195 USD, suggesting that the stock has considerable upside potential.

Apple News Sentiment & Future Outlook

Regional news sentiment around Apple's stock remains generally positive. News of the announcement of four new iPhone models and updates to the Apple Watches promises to stir strong consumer interest and potential sales growth for Apple. Furthermore, the iPhone continues to dominate the smartphone market, which is likely to drive higher-than-anticipated sales growth.

The recent 'Wanderlust' event and the upcoming pre-orders of iPhone 15 on September 15, 2023, signal many promising developments for Apple Inc. However, investors might be wary of the prospect of the Federal Reserve tightening its policies, which could lead to slower growth.

Summary & Forecast

Taking into account the technical and fundamental analysis and news sentiment, the outlook for Apple Inc. appears positive. The stock might remain under pressure in the short term, given the bearish short-term technical indicators, but the long-term outlook seems promising due to solid fundamentals and positive upcoming events.

The forecast for the next trading day sees the possibility of a minor dip due to immediate technical pressures, but the stock will likely stabilize around the support levels. The upward potential for the coming week could be possible once Apple begins its pre-orders for iPhone 15.

Evaluation: Hold

Despite the current price dip, AAPL's solid fundamentals, positive news sentiment and projections offer good growth prospects. However, for those currently holding the stock, it might be prudent to monitor the developments closely before making further investments, considering the reasonably high PE and looming Federal Reserve policy adjustments. For potential investors, the stock might be a 'Buy’ once it shows signs of stabilizing above the support level.

Check full Apple forecast and analysis here.