Sign InSummary
Apple Inc. stock (AAPL) closed at $178.19 on August 9, 2023, indicating potential for a reversal as it is oversold, but investors should be cautious as the bullish trend may be losing steam and the stock has been in a downtrend, although the potential acquisition of Disney's assets and a positive Supreme Court ruling could have a positive impact.
Technical Analysis
Apple Inc. (AAPL) closed the market at $178.19 on August 9, 2023, falling by $1.61 (-0.90%). Notably, the stock had a low and high trading range of $177.01 and $180.93, respectively. The trading volume for the day stood at 56.57 million, slightly lower than the average volume of 57.01 million.
In terms of basic market staples, the stock's RSI14 is at 24, indicating that AAPL might currently be oversold and therefore might be poised for a reversal. With a current MACD of 0.96, the bullish trend might be losing steam. This is a significant area of observation for potential investors. The stock is currently trading closer to its year low of $124.17 than its year's high of $198.23, depicting that the stock has been in a downtrend.
On the basis of moving averages, AAPL's 50-day moving average of $187.36 is higher than its 200-day moving average of $160.37, which generally suggests that investors are cautious about the stock, and they're ready to sell off their holdings, a factor that might lead to bearish short-term trends. Its ATR (Average True Range) is at approximately 1.91, indicating high volatility.
For the next trading day, support is expected at $177.25, and a resistance level is estimated at $178.85.
Fundamental Analysis
Apple's market cap currently values at approximately $2.80 trillion, making it one of the world's largest corporations. It has a Price-to-Earnings (P/E) ratio of 30.25, which is higher than the average P/E ratio for many tech companies. This could indicate overvaluation, but its dominance and ability to generate high profits could justify this estimation.
The company has around 15.73 billion shares outstanding, and the earnings per share (EPS) stand at $5.89. The next earnings announcement is expected on October 25, 2023, which could provide additional insights about the company's performance and influence the stock.
Some recent news impacting the company includes a Supreme Court ruling that favored Apple in a dispute with Epic Games. In addition, there are rumors of Apple potentially buying Disney assets, which may increase market excitement if substantiated.
Target Price and Predictions
The discounted cash flow (DCF) is $179.64, which is currently higher than the last closing price. The target median price is $192.5, whereas the consensus forecast is $186.76. The stock's low and high target price estimates are $110 and $240 respectively, indicating high variability among individual forecasts.
Final Evaluation
Considering the available data and the implications of the technical and fundamental analysis, Apple Inc.'s shares might be considered a Hold. The company is demonstrating mixed signs of both bullish and bearish trends. The positive Supreme Court ruling could provide a slight uplift, but the disparity between moving averages indicates potential short-term downturns.
However, investors should still monitor the stock closely, considering the firm's solid market position and the possible impact of the potential acquisition of Disney's assets. As always, the final decision should be based on an investor's risk tolerance, investment horizon, and overall market understanding.
