Apple Inc. (NASDAQ:AAPL) Outpaces Stock Market Gains
Apple (AAPL) closed at $182.54 in the latest trading session, marking a +1.61% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.82%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.64%.
Prior to today’s trading, shares of the maker of iPhones, iPads and other products had lost 11.45% over the past month. This has lagged the Computer and Technology sector’s loss of 8.68% and the S&P 500’s loss of 4.58% in that time.
Wall Street will be looking for positivity from AAPL as it approaches its next earnings report date. In that report, analysts expect AAPL to post earnings of $2.10 per share. This would mark a year-over-year decline of 10.26%. Meanwhile, our latest consensus estimate is calling for revenue of $53.46 billion, up 0.36% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.48 per share and revenue of $256.93 billion. These totals would mark changes of -3.61% and -3.26%, respectively, from last year.
Any recent changes to analyst estimates for AAPL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AAPL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AAPL’s current valuation metrics, including its Forward P/E ratio of 15.65. For comparison, its industry has an average Forward P/E of 10.11, which means AAPL is trading at a premium to the group.
Meanwhile, AAPL’s PEG ratio is currently 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Computer – Mini computers was holding an average PEG ratio of 2.22 at yesterday’s closing price.
The Computer – Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 188.13.
The projected upper bound is: 192.17.
The projected lower bound is: 172.67.
The projected closing price is: 182.42.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.3005. This is not an overbought or oversold reading. The last signal was a buy 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 44.33. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 1 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 29. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.900 at 182.540. Volume was 2% above average (neutral) and Bollinger Bands were 39% wider than normal.
Open High Low Close Volume___
184.280 184.990 181.140 182.540 29,773,428
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 178.59 194.17 190.74
Volatility: 32 32 40
Volume: 29,582,174 29,414,102 34,691,176
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.
APPLE INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 4.3% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 17 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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