Mega Technology names have lead the market this year. Here is the breakdown on $AAPL, otherwise known as Apple.
Current Price: $117.08
52/Wk High: $137.98
52/Wk Low: $53.153
Market Cap: $2.0 Trillion
Read below for the breakdown!
Apple is one of the best-known technology names and brands in the world. Apple designs and manufactures mobile devices and personnel computers.
Taking a look at the price of the stock itself, it can be broken down by segment. According to TREFIS (@trefis) 42.8% of the stock price is based on Apple’s iPhone segment.
Furthermore, 24.3% of the stock price is based on Services, 14.5% is based on the Apple Watch, TV & Accessories, 7.2% on Apple’s Mac segment, 6.2% on the iPad segment, and finally 5.0% on cash.
Given that the technology giant has upcoming earrings on the 29th, it is only right to take a look at Apple’s last reported quarter and what guidance looks like.
Given that earnings are close and Apple just released 5G capable iPhones in which saw a massive pre-order volume of 2 million orders in the first 24 hours of availability, it is clear that the stock could have great upside potential.
In the last quarterly report, Q3, Apple delivered a solid beat, far surpassing the expectations of the market. Apple reported a Q3 EPS of $0.65 versus the analyst’s consensus estimate of $0.51.
Apple also delivered solid revenues once again, totaling $59.7 billion, up 10.92% year-over-year.
Digging into Apple’s fortress of a balance sheet the numbers are solid;
Total Debt: $113.737 billion
Total Liabilities: $245.062 billion
Total Assets: $317.344 billion
Cash & Short Term Inv: $93.025 billion
Based on the balance sheet Apple is well positioned on a financial basis.
When it comes to the pricing of the stock, Apple currently trades at a moderate price;
Price to Earnings: 35.72x
Price to Sales: 7.34x
Price to Book: 27.86x
Price to Cash Flow: 35.78x
Based on the multiples, Apple is by all means not overpriced and seems to be a solid buy at its current levels.
Given the numbers, analysts are mixed on Apple’s future pricing. Currently, the mean price target sits at $123.50/share, representing a 5.67% upside.
Furthermore, the high price target is $150.00/share, representing a 28.35% gain while the low price target is $66.60/share, representing a -43.01% loss.
The big money is just as undecided on Apple as the analysts. Currently, just 60.04% of Apple is owned by institutions. Top holders include The Vanguard Group, Berkshire Hathaway, and BlackRock Institutional Trust.
Taking a dive into the technicals, the charts could be flashing opportunity. Currently, according to the six-month charts, the MACD has been running flat in recent weeks within a tight range of around 1.07.
Secondly, the six-month RSI is currently hovering around 50.54 while the CCI maintains a lower 23.48. It is also important to note that Apple currently is trading a whopping 21 points off its highs.
Overall, Apple is a solid long-term pick with a brand that continues to boom. On the otherhand in the short-term I expect volatility but a possible run into earnings.
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Disclaimer: This is not direct financial advice, simply an opinion based on independent research. Luke Donay does hold a long call position on Apple.