Fundamental Analysis

• Market Capitalization: Apple has a market capitalization of $3.29 trillion, maintaining its status as one of the most valuable companies in the world.

• Price-Earnings (P/E) Ratio: With an EPS of $6.90 and a P/E ratio of 30.88, the stock is valued based on high growth expectations.

Expectations and Catalysts:

• Earnings Per Share (EPS) and Revenue: Apple is expected to report an EPS of $1.51 and revenue of $90.83 billion in its next earnings report on August 1, 2024.

• AI Innovations and Products: Apple has been praised for its strategy in artificial intelligence (AI), and the next generation iPhone 16, along with other innovations, is expected to drive a strong upgrade cycle in 2025.

• Revenue Diversification: Growth in Apple’s services like Apple Music and Apple TV+, and the development of its own internal silicon, are key factors increasing margin expectations and sustained growth.

Risks and Considerations:

• Market Competition and Saturation: Market saturation and intense competition in the smartphone industry could limit Apple's ability to capture new market share.

• Dependence on China: Geopolitical risks and supply chain disruptions due to dependence on China for manufacturing are ongoing concerns.

Conclusion:

Recommendation: Apple stock is rated as 'Hold'. While there is strong short-term upward momentum, overbought conditions suggest possible corrections. Long-term, continuous innovation and Apple's strong market position make it a solid investment, though waiting for more attractive entry points is prudent.

Technical Analysis

APPLE (H4)

• Supply Zones (Sell): 216.24
• Demand Zones (Buy): 212.04 and 205.00

The stock price reached a new all-time high of 220.19 a week ago, failing to surpass this level in the first days of this week. On Wednesday, June 19, the US market is closed for Juneteenth. As of June 18, 2024, Apple shares were trading at $214.29, hovering around the weekly opening at $213.33, remaining above the demand zone from Friday, June 14, around $212.04. This suggests the possibility of a new rally after the market reopens on Thursday, June 20, towards the supply zone between 216.25 and 217.07. A decisive breakout could push the stock towards 220, aiming for a new record high.

Since the stock price has surpassed the $210 level, the current focus is on the upper estimate of $275.

Conversely, a fall below the POC (Point of Control) from Friday at 212.04 could drive the price to cover the volume inefficiency between 210 and the uncovered POC at 205.0, a demand zone likely to be defended by bulls for a new rally. The last key intraday support of the uptrend is located at 192.13, indicating the uptrend will remain strong as long as this level is not breached.

Operational Volume: Recent volume has been significantly high, reaching 194.03 million shares compared to an average of 62.60 million, indicating growing interest in the stock.

*^{Uncovered POC: POC = Point of Control: The level or zone where the highest concentration of volume occurred. If previously a downtrend occurs from this level, it is considered a selling zone and forms a resistance area. Conversely, if previously an uptrend occurred, it is considered a buying zone, usually located at lows, forming support areas.}