This week we are looking at Apple (AAPL). Apple has pretty much grown consistently over the last 30 years. It’s certainly paid investors very nicely to sit and hold. In this article we are looking more at the potential for a shorter term trade.
We have plotted the annual performance of the closing day prices over the last 10 years in the graph below. As you can see there is general growth, but there are acceleration phases. The first phase we are going to look at is the period from approximately 27th January to 10th May.
It’s best to take a look more closely at the most recent performance. The table below shows the last 5 years.
|Year||27th Jan||10th May||% Growth|
With an average of 15.68% growth, no losing years and 4 profitable out of 5. This makes for an increase of 4.5% per month.
Will Apple Follow It’s Annual Trend & Grow in 2020?
Certainly trading off annual trends alone is a very risky strategy. Previous performance can not be taken as a predictor for certain future performance. There are so many opinions on trading with technical analysis and fundamental analysis and we just wanted to provide you with a strong annual trend. So if you do trade or invest in this, you’ll have to do your own research.
It’s a good idea to find information from a variety of sources. Here are a few stats that we have found from sources (such as gurufocus.com and investing.com) and our opinion on these.
P/E Ratio: 26.71 (possibly overpriced some consider anything under 20 to still be ok value)
EPS Growth Rate: 12.7% (A fairly strong figure)
PEG Factor: 2.62 (anything over 1.00 is considered overvalued)
ROE: 53.35% (Very Strong: Over 12% is strong)
Financial & Debt Ratios
Current Ratio: 1.54 (over 1 is fully covered)
Quick Ratio: 1.5 (over 1 is fully covered)
Debt to EBITDA: 1.32 (Anything under 3 is considered strong)
Discounted Cash Flow Fair Value: $337 (Higher than current price of $316)
Apple’s conference call to discuss first fiscal quarter results is scheduled for Tuesday, January 28, 2020 at 2:00 p.m. PT / 5:00 p.m. ET.
Ex-Div Date:07 February 2020
Pay Date:12 March 2020
Apple Product Releases
Fluctuations in Apple also happen around product releases, there are a few coming up in early 2020 including the iPad Pro and iPhone SE 2.
If you believe that technical indicators are useful, then you may well not see this as a strong buy opportunity. The current Apple price is at a long term high.
Moving Averages: Price is near the upper bollinger band and above the 200 and 100 Exponential Moving Averages (EMA). The shorter term averages largely crossed over the longer term averages several weeks ago.
MACD: The signal line is below the MACD line (Some consider a trading signal when the signal line crosses the MACD)
RSI: Currently at 76 , which is considered overbought.
Please note: money s&i may not have positions in the shares mentioned. Stats are created by us to the best of our ability and figures are found on what we deem to be reliable information. Everything we publish is thoroughly researched. We present financial and investment information and will on occasion express our opinion on these. The information provided throughout our website is not and cannot ever be intended either as investment, financial, tax, legal advice or otherwise.