Buy Apple (NASDAQ:AAPL) Stock Before Earnings?

Buy Apple (NASDAQ:AAPL) Stock Before Earnings?

$AAPL #Apple #iPhone #StockSplit #USA #Nasdaq #Stocks #Trading

Apple
Ticker: NASDAQ:AAPL
Price: $115.04
Recommendation: Buy

Apple Outlook

The pandemic forced Apple to push back the release of its next-generation iPhone. This saw it launch in October and not late September, which will likely boost its Q1 fiscal 2021 sales and hinder its upcoming fourth quarter results.

The success of its services and wearables divisions help make up for the seasonality of its flagship device. With this in mind, our current Zacks estimates call for Apple’s adjusted Q4 earnings to dip 9.2% on 0.51% lower revenue. Nonetheless, Apple’s FY20 EPS figure is projected to climb 9% on 5% stronger sales that would see it hit $273 billion.

Apple’s fiscal 2021 revenue is then projected to jump 15.4% above our current-year estimate to reach $315 billion, with its adjusted earnings expected to come in 24% higher. The company has topped our bottom-line estimates by an average of 16% over the last four periods, including a 27% beat last quarter. And the nearby chart shows that its earnings estimates have trended slightly higher.

Business Summary

Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players.

The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications.

The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.

The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa.

The Greater China segment includes China, Hong Kong and Taiwan.

The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments.

Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 125.00.

The projected lower bound is: 105.08.

The projected closing price is: 115.04.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 16.6185. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 1 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 47.55. 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 35 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 -71. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.710 at 115.040. Volume was 99% below average (consolidating) and Bollinger Bands were 42% narrower than normal.

Open     High     Low     Close     Volume
116.390  116.550  114.280 115.040   1,384,047
Technical Outlook
Short Term:        Oversold
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           118.76        117.42         89.83
Volatility:      46            53             60
Volume:          131,995,360  166,135,104     169,252,336

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 28.1% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 7 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.