Apple (AAPL) is an iconic technology brand. The launch of the Apple iPhone in 2007 has changed how we communicate, kicking years of huge growth for an ever larger tech titan. But innovation has slowed, with an Apple earnings decline forecast for 2019. Apple stock price
Apple Stock Price, Volume Action
The all-time high for Apple stock is 233.47 in October 2018. AAPL stock is about 12% below that level. Apple stock broke out of a cup-with-handle chart pattern on April 8th.
Strong volume indicates support from institutional investors and money managers.
The base's depth is 39%, which is relatively deep. IBD's research shows that they have a depth of 40% or greater have a higher risk of failure.
The midpoint of the act is just above the midpoint of the base. That's technically valid, but leaves a lot of potential overhead supply or resistance for Apple stock.
Still, AAPL stock is near the top of the 5% buy zone
Apple Stock Relative Strength
The relative strength line helps put Apple stock performance in perspective in the short and longer term. The RS line, the blue line in the charts here, measures a stock's price performance vs. the S&P 500.
The RS line for Apple stock has been trending higher since bottoming in late January. It hit a short-term peak when AAPL stock broke out in early April, which is positive. But Apple stock is well below its 2018 peak.
That reflects the AAPL stock plunge that is outpaced and outlasted the sharp stock market correction. Apple's Earnings And Fundamental Analysis
Apple Earnings And Fundamental Analysis [Apple's Earnings And Fundamental Analysis] 19659004 | Ultimately, Apple earns for decline 13% while sales fall 5.9%. With the anticipation of weak results, analysts say Apple's revenue can boost its quarterly dividend and share buybacks
In fiscal Q1, Apple revenue fell 5% – marking the first sales decline in eight quarters. Along with the drop in revenue, Apple earned just 7% in fiscal Q1, breaking a seven-quarter streak of double-digit bottom-line growth.
Analysts don't expect the bleeding to stop for a while. Apple earns for 2019 are expected to drop 4.6% while sales drop 4.5%.
Investors generally should look for stocks that enjoy at least 25% earnings and sales growth, the stronger the better.
From fiscal 2004 to fiscal 2012, Apple's annual earnings rose 500%, 233%, 60%, 75%, 73%, 34%, 66%, 83%. % and 59%. That's what such an amazing Apple stock run. Apple iPhone Demand
Between heightened competition from Chinese manufacturers, downward pressure on average selling prices and slower device upgrade cycles, the big issue for the company is waning Apple iPhone demand. Revenue for Apple's flagship product fell 15% to just under $ 52 billion in the December quarter. China smartphone manufacturer Huawei saw revenue increase 39% in Q1 amid 50% surge in global smartphone shipments as it continues to gain considerable market share in China.
Amid slower Apple iPhone unit sales, the company is focusing on its services segment – which includes Apple Music and iCloud storage – as an increasingly important component of the business. Revenue from that segment rose 19% in the December quarter to an all-time high of $ 10.9 billion
The company is launching its Apple TV + streaming service later in 2019, set to compete against Netflix (NFLX ), [+] Disney + from Disney (DIS) and other over-the-top offerings.
Success, and especially profits, could take years and is not guaranteed.
Apple Vs. Other Top Tech Stocks
Top tech stocks like the FAANG stocks ( Facebook (FB), Amazon stock, Apple stock, Netflix stock and Google parent Alphabet (GOOGL)) are back in the spotlight after selling off hard during the 2018 correction. But it's a big-cap tech stock that's not in the catchy acronym – Microsoft stock – that's trading at all-time highs. Microsoft (MSFT) currently boasts the largest market cap of any stock, topping Apple, as it gained some 20% since breaking out of a base in February.
Amazon stock is about 5% below prior highs and is well extended from a 1736.51 buy point. Google stock was in buy range before Q1 earnings, but gapped down after the report. Facebook stock popped on its Q1 earnings, but it's still trading well below highs. And Netflix stock has been moving somewhat sideways for several months.
Apple Stock: A Buy Right Now?
Apple stock is trading in a buy range, but its base is relatively deep and the breakout has not been accompanied by heavy volume. Plus, buying a stock right before earning is extremely risky. And with Apple earnings and sales projected to decline in 2019, the fundamental picture is weak.
Bottom line: Apple stock is not right now for investors focused on growth stocks with strong earnings and top-notch fundamentals.
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