apple
apple
AAPL
$4.80
2.53%
129%
IBD stock price analysis
- Stock protrudes from cup base with handle
- The stock has just cleared a buy point at 192.93.
Industry group ranking
new pattern
cup with handle
*This is not real-time data. All data shown was captured on December 5, 2023 at 12:59 PM EST.
apple (AAPL) is the IBD stock of the day as the consumer electronics giant’s stock breaks out of its cup-with-a-handle base following positive reports from suppliers. Apple stock is up nearly 50% in 2023, making it one of the so-called “Magnificent Seven” companies that have fueled this year’s rise.
X
On the stock market today, Apple shares rose 2.1% to 193.51 in recent trading. Foxconn, Apple’s main manufacturing partner, earlier Tuesday raised its sales outlook for the quarter ending in December.
Following Apple’s stock rally on Tuesday, the stock broke out of its cup-with-handle base with a buy point of 192.93. Additionally, Tuesday’s results pushed Apple’s market capitalization above $3 trillion, the world’s highest valuation.
Top suppliers predict growth
A report released by Foxconn early Tuesday appears to have helped boost Apple stock. Foxconn, based in Taiwan, is a major iPhone manufacturer.
In its monthly earnings update, the contract manufacturer said sales for the first two months of the fourth quarter were slightly better than expected.
“As such, our outlook for the fourth quarter should be better than our initial guidance of ‘substantial growth,'” the company added. to Reuters. Foxconn did not provide exact figures.
Additionally, Foxconn announced that its sales last month reached $20.65 billion, the second highest ever for November and an 18% increase over last year, according to Reuters.
Apple stock: focus on year-end sales season
Previously, Apple shares had risen as much as 8% following the company’s earnings release on November 2nd. However, the stock price has fallen slightly in recent weeks.
In its fiscal fourth quarter, which ended Sept. 30, Apple earned $1.46 per share, an increase of 13% from the year-ago period, and revenue of $89.5 billion, down 1%. Analysts had expected earnings of $1.39 per share and revenue of $89.3 billion, according to FactSet.
Apple’s year-over-year profit growth accelerated for the third consecutive quarter. However, sales were below the same period last year for four consecutive quarters.
Analysts are keeping an eye on any indicators regarding iPhone 15 sales this quarter. Shares fell last week after UBS reported that sales were “slowing” in the lead-up to the start of the holiday season.
Concerns about iPhone competition create a “wall of fear” that investors must overcome before embracing the potential of the company’s services business, according to a Goldman Sachs analysis.
Goldman Sachs rates Apple a buy and lists AAPL on its “Conviction List” of top stocks. Goldman Sachs analyst Michael Ng expects the number of iPhone users to grow 3% annually through 2027.
“This captive installed base provides AAPL with a unique world to capture share of wallet with low customer acquisition costs on services like Apple TV+, Apple Music, and the App Store,” Ng wrote in a recent client note. I am writing.
In its latest earnings report, Apple predicted flat year-over-year revenue growth for the quarter ending in December. But analysts on average expect sales to rise 1% from a year ago to $118.1 billion, according to FactSet.
Apple stock: technical evaluation
On the other hand, Apple is ranked 2nd out of 9 stocks in the IBD Telecom Consumer Products group. IBD inventory diagnosis.
Additionally, Apple stock has an IBD Composite Rating of 88 out of 99. IBD’s Comprehensive Ratings combine five separate proprietary ratings into one easy-to-use rating. The best growth stocks have an overall rating of 90 or higher.
Apple’s IBD relative strength rating is 84 out of 99. Relative strength shows how a stock’s price performance stacks up compared to all other stocks over the past 52 weeks. The best growth stocks typically have an RS rating of at least 80.
Apple stock also recently added IBD swing trader.
You may also like:
Want to make quick profits and avoid big losses? Try SwingTrader
The best growth stocks to buy and watch
5 S&P 500 stocks are nearing buy points
Magnificent Seven Stocks: Latest News and Market Cap Weighting
