Sign InApple Inc. Shows Resilience Amid Market Slump, Analysts Suggest Hold as Stocks May Rebound
Summary
Based on the fundamental and technical analysis, the recommendation for Apple Inc. is to 'Hold' due to prevailing uncertainty and a potential rebound from oversold levels, with a projected slight increase for the next trading day and a further rebound in the upcoming week.
Fundamental Analysis
Apple Inc., carrying the ticker AAPL and trading on the NASDAQ exchange, currently has a market capitalization of $2.77 trillion, making it one of the world's largest public companies. With the last closing price at $177.23 on August 22, 2023, the company has experienced a day's change of $1.39 (0.79%).
The company's stock has a range of $124.17 (year low) to $198.23 (year high). Their earnings per share (EPS) stands at $5.96, resulting in a price-to-earnings (PE) ratio of 29.74, aligning with some of the technology sector's averages.
Apple has seen price action between the low of $176.25 and a high of $177.68 during the last trading day. The moving averages suggest a mixed picture, with the 50-day moving average trending at $187.03, above the last close price, whereas the 200-day moving average is at $161.60, which is below the last close price.
The Moving Average Convergence Divergence (MACD), at -5.69, indicates a bearish trend over the last three months, while the Relative Strength Index (RSI) of 22 suggests the stock may be oversold and could revert to the mean. The Stop-loss limit is $167.61, and there's support at the $175.43 level while resistance stands at $177.25. The average volume of shares traded stands at 57.39 million, slightly higher than the last day's volume of 41.36 million shares.
Upcoming earnings are announced for October 25, 2023. The discounted cash flow (DCF) estimate stands at $178.68. Predicted target ranges for the stock vary with a low estimate of $110 and a high of $240, with an average consensus of $186.76.
The current analyst ratings indicate 24 recommendations for 'Buy', 8 for 'Hold', and 1 for 'Sell'. There are no 'Strong Buy' or 'Strong Sell' recommendations.
Recent News
In recent news, Apple's stocks have been praised as one of the few tech stocks resisting this month's market slump. Investors have recognized the potential of Apple with talk circling around Apple joining the $1 Trillion club by 2030 alongside tech giants like Amazon, Microsoft, and Nvidia. However, some skepticism is cast over Apple's share buyback program with arguments suggesting this might not be beneficial for Apple shareholders.
Technical Analysis
Based on the current Average True Range (ATR) of 1.70, one might expect some volatility for the following trading session on August 23, 2023. The RSI at 22 indicates oversold levels, suggesting the possibility of a price increase.
Projection
Given that DCF is slightly higher than the last close price and the current consensus among analysts is a 'Buy,' the projection for the next trading day could be a slight increase from the last close, possibly in the range of $177.50 to $180. For the upcoming week, taking into account the supportive news and oversold RSI, the price might rebound further towards the $182 - $185 range.
Final Evaluation
Taking into account the fundamental and technical analysis, the final recommendation for Apple Inc. would be a 'Hold' due to prevailing uncertainty and a potential rebound from oversold levels. The anticipated earnings release in October and the generally favorable consensus among analysts could provide an upward push in the future. However, investors should keep an eye on market volatility and watch for crucial thresholds at the identified support and resistance levels for their risk management.
