Sign InApple Inc. Shows Bullish Trend with Strong Financial Stability, Stock Predicted to Slightly Increase
Summary
The analysis, conducted on July 12, 2023, suggests that Apple Inc.'s stock is currently in a bullish trend, but investors should be cautious due to overvaluation, regulatory scrutiny, and dependence on tech stocks.
Fundamental Analysis
Apple Inc.'s last closing price was at $189.77 on July 12, 2023, marking a 0.90% increase. The company has a high PE ratio of 32.06, based on the earnings per share (EPS) of $5.92. Considering the Market Cap of $2.98 trillion, Apple is a large-cap company with strong financial stability.
The company's shares outstanding are 15.73 billion, which have been traded at a volume of approx 55.92 million against the average volume of approximately 56.94 million shares. Based on the higher traded volume, there seems to be a healthy investor interest in the stock.
The recent news about the company indicates increased regulatory scrutiny over data storage relating to financial services. It adds a layer of uncertainty to the company's outlook, although Apple's strong position in tech indicates it is well equipped to deal with these challenges.
Technical Analysis
The 50-day Moving Average of Apple's stock price is $179.61, and the 200-day Moving Average is $155.67. Both averages are lower than the last closing price, demonstrating a bullish trend for the stock over the medium and long term.
The Relative Strength Index (RSI14) is 63, indicating the stock is neither overbought nor oversold. The 3-month MACD of 4.115 indicates a positive and bullish momentum, adding strength to the buy signal.
The stock's year low and year high are $124.17 and $194.48 respectively. Given its last closing at $189.77, it is trading near its 52-week high, signifying a strong upward trend. Also, the discounted cash flow (DCF) is valued at $191.22, which is higher than the last close, another bullish sign.
The target high, low, consensus, and median are $250, $110, $182.79, and $182.5 respectively. The last close price is above the consensus and median, suggesting potential overvaluation.
Stock Price Prediction
Predicting future stock prices, the stock shows a continuing upward trend as per the moving averages and MACD. Considering this alongside investor interest, a relaxed inflation environment, and the upcoming announcement about the "special rebalance" of the Nasdaq 100, the prediction for the next trading day, July 13, 2023, is a slight increase.
However, considering company-specific factors and discounting models such as the DCF, indicating a price of $191.22, it's expected the price will hover around this level in the upcoming week. Any deviation from this prediction would be contingent on internal, market-wide news, earnings announcements, and the outcomes of the regulatory scrutiny over data storage.
Conclusion
Given the strength of the company as shown by its technical indicators, and healthy investor interest, the stock seems to be a promising investment. However, the indicated overvaluation as per the Consensus target, the upcoming 'special rebalance' of NASDAQ 100, regulatory scrutiny, and over-dependency on tech stocks could pressure the share price downwards.
Considering these factors, The stock is a Hold, but investors should monitor the company's developments particularly the upcoming Earnings Announcement on 08/03/2023, and NASDAQ 100's 'Special Rebalance' to inform any decision to Buy or Sell this stock.
