Apple Inc. (NASDAQ:AAPL) stock still has plenty of catalysts to entice buyers

Apple Inc. (NASDAQ:AAPL) stock still has plenty of catalysts to entice buyers

Apple Inc. (NASDAQ:AAPL) stock still has plenty of catalysts to entice buyers

Apple (NASDAQ:AAPL) will report earnings after the bell on Nov. 1. Analysts expect the Cupertino, California-based consumer electronics giant to report improved earnings and revenue. This will also serve as the first earnings report since the latest iPhone release. Still, regardless of the numbers reported by the company, the case for owning Apple stock remains solid.

For the previous quarter, Wall Street forecasts earnings of $2.78 per share. If this holds, it will represent a 34.3% increase from last year when the company reported quarterly earnings of $2.07 per share. Analysts also predict revenues of $61.57 billion for the quarter. This comes in 17.1% higher than last year when the company brought in $52.58 billion.

Apple exceeded earnings expectations in the previous four quarters. Considering the history of Apple stock, another earnings beat remains likely. However, I expect Wall Street will focus on sales of the latest iPhone models, the number one Apple product in terms of revenue.

Profit growth has defined Apple stock since co-founder Steve Jobs began his second and final stint at the company. The iPod, along with the iPhone and other products, drove Apple from a company near bankruptcy to the world’s largest publicly traded company.

Despite its large size and the loss of Jobs’s creative abilities, AAPL still enjoys double-digit growth rates. Over the past five years, AAPL stock saw average annual growth of almost 13.5%. The company has experienced an exceptionally strong year in 2018 with predicted net income growth of 28%. Analysts expect double-digit growth to continue over the next five years. They forecast average annual net income increases of almost 11.7% during that time.

Moreover, I see little that will stop AAPL’s growth. Even without Steve Jobs, the company has kept abreast of changing trends and continues to lead in smartphone innovation. The upcoming move to 5G wireless technology should bolster that trend over time. Hence, I see little that will stop its double-digit growth in the foreseeable future.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 223.98.

The projected lower bound is: 202.53.

The projected closing price is: 213.26.

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 24 black candles for a net of 2 white candles.

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 35.5143. This is not an overbought or oversold reading. The last signal was a buy 12 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 43.43. 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 sell 38 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 -151.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 sell 16 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.060 at 213.300. Volume was 25% above average (neutral) and Bollinger Bands were 9% wider than normal.

Open High Low Close Volume___
211.150 215.180 209.270 213.300 36,659,992

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 217.66 221.10 191.76
Volatility: 34 31 30
Volume: 35,674,016 33,511,786 31,999,270

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 11.2% above 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 moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 14 periods.

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