Sign InApple Inc. Stock Predictions: Bullish Momentum Expected, Strong Buy Option
Summary
Apple Inc. (AAPL) is a profitable technology company with a strong market presence, and based on the recent news, analyst consensus rating of 'Buy', and technical indicators suggesting a potential rebound, it is categorized as a Buy option with expectations of positive performance in the upcoming trading days and a trend towards its discounted cash flow value in the next week. (Analysis date: September 23, 2023)
Company General Overview
Apple Inc. (Ticker: AAPL) is a world-renowned technology company listed on the NASDAQ, with a substantial market capitalization of $2.73 trillion. As of the last close on September 23, 2023, the stock finished at $174.79 with a slight increase of $0.86 (a 0.49% change). The company has 15.63 billion shares outstanding.
Price Performance Analysis
Over the past year, Apple's stock has been fluctuating between a low of $124.17 and a high of $198.23. The intraday trading span on the last day ranged from a low price of $174.05 to a high price of $177.08. Overall, the stock closed near the day's low and below its 50-day moving average of $183.71, indicating slight bearish momentum. However, it still trades above its 200-day moving average of $165.35, showing a longer-term bullish trend.
Market Sentiment and Analyst Predictions
The consensus among market analysts is 'Buy', with 22 recommendations for 'Buy', ten for 'Hold', and only one for 'Sell'. Analysts have set a consensus price target of $189.18 and a median target of $195, suggesting potential upside growth from the current price. The target range varies from a low of $110 to a high of $240.
Technical Indicators Analysis
The MACD (3-month) is positive, indicating bullish momentum, while the RSI14 value of 27 signals an oversold condition. This suggests that the stock may be due for a short term rebound. The ATR stands at 2.02, indicating volatility within the stock. Its major support and resistance levels stand at $174.21 and $177.56 respectively.
Fundamentals
Apple's EPS is $5.96 and has a PE ratio of 29.33. This indicates that the company is profitable and has better earnings relative to the industry average PE ratio. The discounted cash flow (DCF) valuation of the stock is $176.24, which suggests that the stock is undervalued at the current market price.
Recent News
Positive news regarding Apple's direction compared to that of Mark Zuckerberg's Metaverse Vision suggests that the company is strategically placed to continue innovation and maintain its industry leadership role. Additionally, a recent partnership with Boost Infinite and Amazon may enhance its market presence and profitability.
Conclusion - Stock Rating
Considering the above analysis, it is anticipated that AAPL stock will perform positively in the upcoming trading days. For the next trading day, given the oversold condition (RSI14) and bullish MACD, the stock is expected to rebound. Over the next week, the stock is predicted to trend towards its DCF value of $176.24.
The fundamental indicators show Apple Inc. is a profitable company with a strong market presence, and due to the recent encouraging news and analyst consensus rating of 'Buy', the stock is categorized as a Buy option. This assumes that bullish momentum will continue in the medium to long term, despite the short-term bearish trend. Please remember that this analysis should only be one tool in your overall investment decision-making process.
