Sign InApple Inc. Shows Promising Outlook with Positive Fundamental and Technical Indicators
Summary
Apple Inc. stock (AAPL) experienced a minor decline in price on October 17, 2023, but both fundamental and technical analysis suggest it may perform steadily or positively in the near future, making it a Hold to Buy investment.
Fundamental Analysis
Apple Inc. (Ticker: AAPL), as of its last closing on October 17, 2023, registered a price of $177.15, experiencing a decline by $1.57 or 0.88%. The share presented a low and high intraday price of $174.80 and $178.42 respectively. Over the last year, Apple Inc.'s share has performed between a low of $124.17 and a high of $198.23.
AAPL shares, listed on the NASDAQ exchange, maintain a high market capitalization of about $2.77 trillion. There was seen a volume of about 55.88 million shares traded, slightly below the average volume of 58.44 million. The company's earnings per share (EPS) was $5.96, leading to a Price/Earnings (PE) ratio of 29.72. The firm has nearly 15.63 billion shares outstanding.
Based on the investment analysts' consensus, AAPL is recommended as a "Buy" with 22 analysts suggesting a "buy" stance, 10 analysts favoring a "hold" and only one analyst recommending a "sell". The consensus target price is $190.63 with a high estimate of $240 and a low estimate of $110.
Recent news about Apple Inc. includes the CEO's visit to China amid potentially sluggish iPhone 15 sales, the launch of a new $79 Apple Pencil, and attractive yields on Apple bonds. Moreover, analysts are optimistic that tech stocks will perform strongly in the 3Q earnings season.
Technical Analysis
The technical indicators display a strong signal. Apple Inc.'s trailing Relative Strength Index (RSI) is at 69, slightly below the typical overbought level of>70. The 50-day moving average of around $177.83 is higher than the 200-day moving average of $168.56, indicating an uptrend in prices over a period.
The Moving Average Convergence Divergence (MACD), an indicator used to identify potential buying and selling opportunities, shows a value of -1.30. Typically, a negative MACD suggests a bearish trend, which might entail an upcoming pulling back of the stock. The stock has a support line at approximately $176.30 and faces resistance at roughly $177.97.
The Average True Range (ATR) stands at 1.89, indicating moderate volatility, while the Discounted Cash Flow (DCF) suggests a value of around $178.60.
Outlook and Evaluation
Given the fundamental and technical data, Apple Inc. may exhibit steady to positive performance for the next trading day (October 18, 2023) and for the upcoming week. Earnings reports due on 10/25/2023 could give further direction to the stock's trajectory.
Considering the combination of a solid market cap, overall "buy" consensus among analysts, optimistic technical indicators including above-average moving averages, and encouraging news around tech stocks' earnings resilience, Apple Inc. stock can be categorized as a 'Hold' to 'Buy'.
Investors should pay attention to external factors such as market trends, geopolitical happenings, and major announcements from the company - one such being the upcoming earnings report. Always, investment decisions should align with individuals' risk tolerance and investment objectives.
