Sign InApple Inc's Technical Analysis and Fundamental Evaluation Suggest a 'Hold' Position
Summary
On November 3, 2023, Apple Inc.'s stock price decreased slightly, but analysts predict a potential increase in the next trading day and recommend a 'Hold' position due to concerns about revenue decline from the Chinese market.
1. Company Details and Technical Analysis
On November 3, 2023, Apple Inc. (Ticker: AAPL), listed on the NASDAQ exchange, closed the day at $176.65, marking a 0.52% decrease (-$0.92) from the previous trading session. The trading volume during the day was 77.53 million shares, higher than its average volume of 59.67 million. The company has a market capitalization of approximately $2.76 trillion.
The company's share price fluctuated between $173.35 (low) and $176.82 (high) during the day. It was less than a dollar increase when compared to its 50-day moving average of $176.58, but a more significant increase when compared to its 200-day moving average of $171.3.
The Relative Strength Index (RSI14) was recorded at 46 indicating that the stock is neither in an overbought nor oversold condition. The Moving Average Convergence Divergence (MACD) for three months was reported at -0.53, implying a potential bearish signal.
Analyzing the Average True Range (ATR), which was noted at 1.91, it indicates a moderate volatility. Furthermore, the stock's next support and resistance levels are $176.3 and $177.97, respectively.
2. Fundamental Analysis
Apple Inc reported an Earnings Per Share (EPS) of $5.96, placing its price-to-earnings (PE) ratio at 29.64. Discounted Cash Flow (DCF) was calculated to be $178.545, providing an idea about the intrinsic value of the stock.
Behavioral finance analysts place Apple's target high at $240 and target low at $110, with a consensus target of $190.69 and a median target of $195. Considering the purchase preference ratio, 23 analysts recommend buying the stock, 9 hold an opinion to hold the stock, and 1 suggests selling. The overall consensus based on analysts' recommendations is to buy the stock.
As of the most recent data, Apple has about 15.63 billion shares outstanding.
3. Recent News and Earnings Announcement
Considering the recent news, sentiments around Apple's performance range from positive investing advocation to concerns about significant factors such as low sales in the Chinese market. Jim Cramer, host of 'Mad Money,' emphasized owning Apple rather than trading it, after a mixed earnings report. However, Apple shares declined due to concerns about decreased revenue from China, despite some analysts suggesting these concerns might be overblown.
The retrieval of financial data also listed the Earnings Announcement on November 2, 2023.
4. Predictions and Recommendations
Given the analysis, it is predicted that Apple Inc.'s share price may witness a slight increase on the next trading day, November 06, 2023, potentially reaching the resistance level of $177.97. Further, in the upcoming week, the stock's price might move closer to 50 Day moving average of $176.58.
Based on current technicals, vital statistics, analyst recommendations, and market sentiments, Apple Inc. would currently be categorized as a 'Hold.' Although it trades above its 200-day moving average, indicating an overall upward trend, the minor concerns regarding revenue decline from the Chinese market and the MACD signifying a potential bearish signal advocate caution, thereby suggesting a 'Hold' position until further clarity.
