Sign InApple Inc. Shows Signs of a Turnaround Despite Current Market Turbulence
Summary
Apple Inc. closed at $174.49 on August 18, 2023, with a marginal gain of 0.49%, and the oversold condition indicated by the RSI14 suggests a potential turning point in the near future, making it a Buy recommendation for investors.
Current Position
Apple Inc. (ticker: AAPL) closed at $174.49 on August 18, 2023, with a marginal gain of 0.49% in the trading session. It traded in the range of $171.96 - $175.1 in the mentioned session. The Relative Strength Index (RSI14) currently stands at 11, which signals an oversold condition and could possibly indicate a turning point in the near future.
Performance and Trend Analysis
Apple Inc., listed on NASDAQ, has shown marked volatility with a range of $124.17 to $198.23 in the past year. The current market capitalization is $2.74 trillion, making it one of the leading enterprises globally. The last session had a trade volume of 56.10 million, which was lower than the average volume of 57.26 million.
Technical indicators show that AAPL has been trading below its 50-day moving average ($187.20) and close to its 200-day moving average ($161.36), suggesting a bearish trend. The low RSI further supports this. However, the MACD of -3.99, which depicts the disparity between the short-term and long-term price movement, also indicates a downward momentum.
Fundamental Evaluation
AAPL reveals healthy fundamental standings with a P/E ratio of 29.62 and EPS of $5.89, reflecting strong profitability. With approximately 15.73 billion shares outstanding, the company shows a promising capacity to generate profits.
The discounted cash flow (DCF) is $175.94, which is slightly above the current trading price, implying that AAPL may be undervalued. Additionally, the company has robust support at $174 and faces resistance at $177.25.
Market Expectations and Analyst Recommendations
The consensus of 24 analysts suggests a "Buy" recommendation for AAPL stock, with eight holding the stock and only one opting for "Sell". The consensus target is $186.76, with a high estimate of $240 and low of $110.
Recent Developments
AAPL's forthcoming venture into virtual reality and the potential to lead smartphone shipments with the iPhone 15 implies progressive future prospects. The company's demonstrated durability during recessions due to strong cash flow generation could also deliver an attractive proposition to investors seeking total returns, not just dividends.
Price Prediction
Given the fundamental strength, potential in new ventures, and considering the oversold condition indicating forthcoming changes, AAPL's price could bounce back. For the next day of trading (August 21, 2023), there could be a probable upward swing, given the substantial support level of $174. However, considering the bearish trend indicated by the 50-day moving average and MACD, slight fluctuations in price could be expected in the upcoming week.
Final Evaluation
Despite current market turbulence and AAPL's shares experiencing a downturn recently, the fundamental strength of Apple coupled with promising future prospects earns it a "Buy" recommendation. However, investors are advised to keep an eye on technical indicators and market trends, along with the company's future developments and news, to make a knowledgeable decision.
