Sign InSummary
Apple Inc. closed at a price of $173.66 on October 4, 2023, with a market capitalization of $2.72 trillion, and while shorter-term indicators are mixed, longer-term trends and analyst recommendations suggest it is a 'Hold' to 'Buy' stock.
Introduction
Apple Inc. (Ticker: AAPL) on NASDAQ closed at a price of $173.66 on October 04, 2023. Currently, Apple's market capitalization stands at $2.72 trillion, making it one of the largest companies in terms of market value. The company has an outstanding share count of 15.63 billion.
Recent Price Activity
On the last trading day, the closing price represented a 0.73% increase from the previous day, with a change of $1.26. The day's trading saw the price fluctuating between $170.98 and $174.21. The price activities and the volatility, represented by an ATR (Average True Range) of 2.01, suggest considerable trading interest in the stock.
Technical Analysis
The relative strength index (RSI14) was 46, indicating neither overbought nor oversold conditions. Meanwhile, the 50-day moving average (MA) was $180.50, and the 200-day MA was at $166.51, indicating that the stock has been trending downward recently but is still above its longer-term trend. Meanwhile, the MACD had a negative value of -3.61, suggesting bearish momentum in the short-term. The stock demonstrated a support at $171.96, while its resistance level is at $177.56.
Fundamental Analysis
Apple has a trailing 12-month earnings per share (EPS) of $5.96. The stock is currently trading at a price to earnings (PE) ratio of 29.14, which may suggest that it is fairly valued considering the average PE of the NASDAQ. This may indicate growth prospects for Apple are aligned with the broader market expectation.
The recent news that the CEO, Tim Cook, has sold a significant amount of Apple stock may indicate insider activity but does not necessarily suggest a negative outlook for the company. The iOS update to fix the iPhone 15's overheating problem might improve customer experience and could influence future iPhone sales positively.
Analyst Consensus
A majority of the analysts have given a 'buy' recommendation for the stock, with consensus estimates for price targets ranging from a low of $110 to a high of $240, and a median target of $195. The consensus target indicates expected upside potential. The majority analyst rating combined with the discounted cash flow (DCF) estimate of $175.11 suggests a positive outlook.
Recent News
The recent news articles emphasize Apple's robust free cash flow yield compared to other trillion-dollar companies and its potential competition with Meta in terms of AR/VR technology.
Stock Price Predictions
For the next trading day, given the stock's recent volatility, the support, and resistance levels, as well as the negative MACD, the price may test the support level of $171.96, taking into consideration the fundamental factors at play. For the upcoming week, if the stock price moves beyond the support level and the market conditions are favorable, Apple might aspire to reach the resistance level of $177.56.
Final Evaluation
In light of the above, while the shorter-term technical indicators suggest a mixed outlook, the longer-term trends alongside the consensus 'buy' recommendation from analysts suggest that Apple's stock can be categorized as a 'Hold' to 'Buy'. It would be wise for potential investors to regularly monitor the stock and the emerging market trends. Especially considering upcoming earnings announcement which is scheduled for 10/25/2023 that could potentially act as a catalyst for the stock's movement.
