Apple Inc. (NASDAQ:AAPL) impressed investors with better-than-expected September-quarter results

Apple Inc. (NASDAQ:AAPL) impressed investors with better-than-expected September-quarter results

Apple Inc. (NASDAQ:AAPL) impressed investors with better-than-expected September-quarter results

Consumer electronics heavyweight Apple (AAPL) impressed investors with better-than-expected September-quarter results and an optimistic outlook for the holiday quarter. Apple stock surged on Thursday and neared an all-time high.

At least 16 Wall Street analysts raised their price targets on Apple stock following the company’s fiscal fourth-quarter report late Wednesday. Of those, 12 have buy ratings on the stock and the others are neutral or negative.

Apple stock rose 2.3% to close at 248.76 on the stock market today. It hit a record high of 249.75 on Tuesday.

On Sept. 11, Apple stock broke out of a first-stage, flat base at a buy point of 221.47, according to IBD MarketSmith charts.

Apple Delivers ‘Home Run Quarter’

The Cupertino, Calif.-based company earned $3.03 a share on sales of $64.04 billion in its fiscal fourth quarter ended Sept. 28. Analysts expected Apple earnings of $2.84 a share on sales of $62.45 billion, according to Zacks Investment Research. On a year-over-year basis Apple earnings rose 4%, while sales climbed 2%.

For the December quarter, Apple guided to sales of $87.5 billion, vs. analyst estimates for $86.2 billion. Apple’s sales target would translate to revenue growth of 3.8% year over year. It did not give an earnings target.

“With all the perceived headwinds going against Cupertino in the last three months (smartphone maturity, competition rising, China tariff storm clouds, Huawei backlash in China), the company with its back against the wall delivered a home run quarter,” Wedbush analyst Daniel Ives said in a note to clients.

The successful launch of the iPhone 11 was “the star of the show,” even though the quarter only included nine days of sales, he said.

Ives reiterated his outperform rating on Apple stock and raised his price target to 300 from 265.

Apple Watch, AirPods Make Up For iPhone Weakness

Apple’s fast-growing wearables and services businesses offset slumping iPhone sales last quarter.

IPhone revenue fell for the fourth consecutive quarter on a year-over-year basis. Even though iPhone revenue dropped 9% year over year, the result was better than feared, Monness Crespi Hardt analyst Brian White said in his note to clients. He kept his buy rating on Apple stock and upped his price target to 300 from 265.

Apple Chief Executive Tim Cook called out hot sales of Apple Watch smartwatches and AirPods wireless earbuds in the September quarter. On a conference call with analysts, Cook said he expects the momentum for its wearable products to carry over into the holiday quarter.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 226.13.

The projected upper bound is: 259.19.

The projected lower bound is: 239.78.

The projected closing price is: 249.48.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.8416. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 70.81. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 2 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 72. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 5.500 at 248.760. Volume was 30% above average (neutral) and Bollinger Bands were 51% wider than normal.

Open     High      Low     Close     Volume___
247.240 249.170 237.260 248.760 34,790,520
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 243.46 224.41 198.79
Volatility: 23 28 30
Volume: 25,142,090 26,986,044 27,787,816

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 25.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 51 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.

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