Analyst Research

Analysts See Compelling Value in Apple Inc. (NASDAQ:AAPL)

Apple Inc. (NASDAQ:AAPL) after opening the company’s stock at the price of $151.27, its shares traded on 1.52% above secure line. The stock exchanged hands 33.57M shares versus average trading capacity of 25.97M shares. It has a market cap of $795.32B.

Wall Street analysts are predicting that Apple Inc. (NASDAQ:AAPL) will report earnings per share of $1.57 in their quarterly report. The firm is expected to announce results on 7/25/17.

For the current quarter Apple Inc. (NASDAQ:AAPL) has high EPS estimates of $1.68 in contradiction of low EPS estimates of $1.5. However a year ago for the same quarter the company has reported $1.42 EPS. Average estimation for the current quarter has been provided by 38 analysts.

Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.

A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously Apple Inc. (NASDAQ:AAPL) reported $2.10 earnings per share (EPS) for the quarter on 5/2/2017 After Market Close, beating the consensus estimate of $2.02 by $0.08 with surprise factor of 3.96%.

Apple Inc. (NASDAQ:AAPL) has average revenue estimates of $44.87B, compared to low analyst estimates of $43.2B and high estimates of $45.75B for the current quarter. A total number of 36 analysts provided estimations over revenues. For the next quarter the company has anticipated average revenues of $50.8B, according to the sentiments of 36 analysts.

Taking a broader look at the analyst consensus, most recently Apple Inc. (NASDAQ:AAPL)’s price target was revised on 05/17/17 and according to 42 analysts stock’s price will reach at $154.36 during 52 weeks with standard deviation of 24.41. Apple Inc. (NASDAQ:AAPL)’s  minimum price target estimates has been figured out at $104.00 while the maximum price target forecast is established at $202.00, if we look at the price target with an optimistic approach it has upside potential of 32% from its latest closing price of $152.54.

On the other hand Apple Inc. (NASDAQ:AAPL) has Relative Strength Index (RSI 14) of 62.00 along with Average True Range (ATR 14) of 2.21, where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder. Consequently Apple Inc. (NASDAQ:AAPL)’s weekly and monthly volatility is 1.55%, 1.26% respectively.

In terms of Buy, Sell or Hold recommendations, Apple Inc. (NASDAQ:AAPL) has an average broker recommendation of 1.80. This is according to a simplified 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. There are currently 30 recommendations in total that have been tracked in order to arrive at this number, of those, 17 have given the shares a Strong Buy while 6 are recommending a Buy, 5 have given the stock a Hold rating, 0 a Sell and 2 a Strong Sell.

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