Sign InApple Inc. Stock Analysis: Promising Fundamentals and Technical Strength
Summary
Based on a fundamental and technical analysis, the article predicts that Apple's stock (AAPL) will hover near the resistance level of $184.92 on August 30, 2023, with some fluctuations, and over the upcoming week, it is expected to move towards the analyst target consensus of $186.76.
Fundamental Analysis
Apple Inc., with a ticker AAPL, traded at a last close price of $184.12 as of August 29, 2023, gaining 2.18%, or $3.93, from its previous trading session. It traded between a low of $179.5 and a high of $184.9 on the day. Looking at the broader picture, Apple's stock has reached a 52-week low of $124.17 and a 52-week high of $198.23. Consequently, the company's current market capitalization stands at approximately $2.93 trillion.
The stock’s 14-day Relative Strength Index (RSI) score is 61, signaling that the stock is neither overbought nor oversold. Whilst AAPL's 50-day moving average of $186.53 is above its 200-day moving average, which is presently at $162.81, the Moving Average Convergence Divergence (MACD) suggests potential bearish market sentiment, which can be a matter of concern.
The Earnings Per Share (EPS) is $5.96, with a Price to Earnings (PE) ratio of 31.43, indicating a somewhat high valuation in comparison to the market average. The firm has approximately 15.63 billion outstanding shares.
The consensus among analysts leans more towards 'Buy' with 24 analysts recommending 'Buy', 8 suggesting 'Hold', and 1 advising 'Sell'. The consensus target price is $186.76. However, individual price targets vary widely, with a low of $110 and a high of $240.
The company’s discounted cash flow (DCF) stands at $188.77, highlighting the intrinsic value of the company's shares.
Additionally, news broke that Apple is exploring the use of 3D printers to produce the steel chassis for some upcoming smartwatches, testing innovative production techniques. Further speculation around Apple's competitors in the race to $5 trillion suggests intensified competition and market pressures.
Technical Analysis
On a technical basis, Apple stock shows signs of strength, with support at $181.99 and resistance at $184.92. The Average True Range (ATR) indicates the stock has a volatility of around $1.81 points, which should guide any stop-loss decisions. If the uptrend continues and Apple's shares break the resistance level, the stock could move towards the analyst target consensus of $186.76.
In the case of retreat, the stop-loss threshold at $176.05 could serve as a lower boundary before embarking on a long position.
Conclusion
Given the fundamental and technical analysis, AAPL's ability to innovate presents potential for longer-term gains, despite some short-term volatility. The predictive power of the MACD needs to be considered, highlighting the likelihood of a bearish turn-around for the stock.
The competitive landscape, future potential strategies, and market sentiment suggest Apple's stock could encounter several fluctuations. However, considering its market standing, financial stability, and ability to generate consistent revenue growth, Apple's stock should be categorized as a 'Hold' for investors seeking steady returns with moderate risk tolerance. AAPL does seem likely to trend higher due to its robust fundamentals, but prudent investors should be aware of the potential near-term technical volatility.
Based on the analysis, we can expect the stock price for the next trading day, August 30, 2023, to hover near the resistance level of $184.92 with some degree of fluctuation. Over the upcoming week, the stock price will likely move towards the analyst target consensus of $186.76 given current market conditions.
