Sign InApple Inc.'s Market Capitalization Reaches $2.93 Trillion, Showing Potential for Growth
Summary
Apple Inc.'s stock shows considerable volatility and has experienced a gain of 1.92% on August 30, 2023, with a consensus rating of Buy from analysts and potential for growth in both the short-term and mid-term, supported by strong revenue, earnings potential, and upcoming product launches.
Fundamental Analysis
Apple Inc.'s market capitalization stands at a hefty $2.93 trillion, making it one of the largest companies on NASDAQ. It closed the last trading session, on August 30, 2023, at $187.65, marking a gain of 1.92%. The stock has experienced a year-to-date high and low of $198.23 and $124.17, respectively. This shows a considerable volatility in the stock, which also reflects in the ATR of 1.79.
Apple's 50-Day Moving Average is $186.53, very close to the last closing price. However, the 200-Day Moving Average is substantially lower at $162.81, indicating that overall trend has been bullish in the mid term. The fact that the current price is considerably higher than the 200-day MA signals an uptrend.
The company has an EPS of $5.96 and a price-to-earnings ratio of 31.48, indicating robust earnings potential. Apple's strong revenue and earnings potential are underlined by the fact that it is expected to grow iOS device shipments by 1.1% in 2023 to an all-time high share of 19.9%, outperforming Android devices.
Analysts have a mixed reaction to AAPL, with a consensus rating of "Buy". Out of the total analysts covering the stock, 24 recommend a "Buy", 8 suggest a "Hold", and only 1 recommends a "Sell".
The stock's RSI14 is 66, which is near the overbought threshold of 70. The three-month MACD is negative, implying a bearish sentiment. However, the stock is trading above its support and below its resistance, indicating a potential follow-up of the current trend.
Technical Analysis
Technical indicators reveal conflicting signals about Apple's stock. While the MACD demonstrates a bearish trend, the proximity of the RSI14 to the 70 overbought reading may suggest the possibility of a pullback.
However, the stock has consistently maintained a level above its 50-day moving average, suggesting a strong bullish momentum in the short term. In addition, it trades close to its resistance level of $188.61 and is significantly above its support level of $181.99. If it breaks this resistance, traders can expect the upward momentum to continue.
Furthermore, based on the consensus price target of $186.76, there may be limited upside potential for the stock.
Upcoming Events & News
Recent news published on August 30, 2023, indicates that upcoming events will contribute significantly to Apple's performance. For instance, the company's planned product launch on September 12, 2023, alongside its increased use of 3D printers in manufacturing smartwatches, is likely to boost the stock's attractiveness. Furthermore, the anticipated launch of the iPhone 15, along with other new product launches such as VisionPro, are expected to offset the negative impact of a weak consumer backdrop.
Projection & Final Evaluation
Given Apple's ongoing strong technological developments, the positive anticipation for the launch of the iPhone 15, and the strengthening market share in mobile device shipments, the company's stock seems to hold potential for growth. In the short term, it is estimated that for the next trading day, August 31, 2023, the stock price will hover near the last closing price. Regarding the coming week, the stock price might fluctuate between the support and resistance figures, i.e., $181.99 and $188.61, considering the overall market sentiment and the upcoming events.
Finally, given the company's current price growth, its potential future growth, and the "Buy" recommendation from analysts, Apple Inc. can be categorized as a "Buy" from both a short-term and mid-term perspective.
