Sign InSummary
As of August 7, 2023, Apple Inc.'s stock has experienced a decrease of 1.73%, but with positive news surrounding the upcoming iPhone 15 and Warren Buffett's potential benefits, there is potential for a short-term upward trend, making it an opportunity to 'Buy' for long-term investors but a 'Hold' for short-term investors.
Overview:
Apple Inc., ticker AAPL, is a multinational technology company traded on the NASDAQ exchange. As of the last close on August 07, 2023, the stock stands at $178.85, experiencing a decrease of $3.14 (-1.73%).
Fundamental Factors:
Apple's market cap stands at $2.8 trillion, reflecting a massive industry presence. The Earnings per Share (EPS) of the company is $5.89 coupled with a relatively high P/E ratio of 30.37. This suggests that investors are willing to pay a substantial price for each dollar of earnings that Apple generates, indicating strong investor optimism surrounding future earnings growth. A P/E ratio at this level generally signifies a company with growth potential.
Technical Analysis:
Relative Strength Index (RSI) for Apple over 14 days stands at 25. Given a scale from 0 to 100, an RSI below 30 generally means a stock is oversold, indicating a possible upward trend in the near future. MACD (3-month) value at 1.58 may suggest the stock is overbought, indicating a possible short term downward correction.
Apple's 50 Day Moving Average is $187.09 and the 200 Day Moving Average is $160.01. The fact that the 50-Day MA is higher than the 200-Day MA demonstrates a shorter-term bullish trend. However, with the latest closed price of $178.85, the AAPL stock is currently trading below its 50-day moving average, signaling a recent bearish trend.
The discounted cash flow (DCF) analysis indicates an intrinsic value of $180.30, which is slightly higher than the current market price, suggesting the stock is undervalued.
News Sentiment:
Recent news reports have been both positive and negative for Apple. A potentially positive report suggests that Apple's stock buybacks could be beneficial for heavyweight investor Warren Buffett. News on the upcoming iPhone 15 could also potentially boost the stock, given an often-observed trend of Apple shares responding favourably to new product releases.
However, other news reported that Apple's stock was sliding towards the longest losing streak of the year with three consecutive quarters of declining sales, the first such instance since 2016. This suggests near-term bearish pressures on the stock.
Target Price Analysis:
Analysts' target range for AAPL stock price extends from a low of $110 to a high of $240, with a consensus estimate of $186.76 and median of $192.50. Given this, there is substantial room for price appreciation from the current price level.
Prediction for Next Trading Day and Upcoming Week:
Considering recent trends, news sentiment and technical and fundamental factors, the stock might have short-term pressure on the next trading day. However, positive news related to iPhone 15 and Warren Buffett's positive sentiment could offset the downward pressure as the week progresses, particularly if the new iPhone receives a positive response.
Final Evaluation:
Considering the declining stock streak amidst positive news (iPhone 15, potential benefits for Warren Buffett and strong fundamental factors), this might be an opportunity to 'Buy' at a discounted price before the next potential upward trend, especially for long-term investors. However, short-term investors might wish to 'Hold' considering the near-term bearish pressures. In essence, AAPL could be a potential 'Buy' for long-term investors while a 'Hold' for short-term investors.
