A key resistance level has formed in the chart of Apple Inc. (AAPL). If this level is broken, a breakout could ensue…
Apple Inc. (AAPL) designs a wide variety of consumer electronic devices, including smartphones, tablets, PCs, smartwatches, TV boxes, and more. The majority of its revenue is through iPhone sales.
The company is benefiting from strong momentum in its Services segment, due to increased demand for the App Store, Apple Music, video, and cloud services. AAPL is also seeing healthy demand for its Apple devices including iPad, Mac, and Wearables. Its prospects for the first quarter are strong due to iPhone 5G sales.
AAPL had $90.9 billion in cash at the end of the last quarter, down from $93 billion in the previous quarter. This is compared to $98.7 billion in long-term debt. The company does have a healthy current ratio of 1.4, indicating plenty of liquidity to handle short-term debt. It also is very profitable with a net margin of 20.9%.
The company has had stable earnings and sales growth with a 3-year average revenue growth rate of 4.7% and 10.2% for EPS growth. While the company can be considered overvalued with a 40.5 P/E, that is on par with the S&P 500.
Its stock has shown strong mid and long-term momentum leading to a “Strong Buy” rating in our POWR Ratings system. This is shown in its chart below.
Take a look at the 1-year chart of AAPL below with added notations…
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