Is Apple (AAPL) Setting up for a Big Move?

Apple Inc. (AAPL) designs a wide variety of consumer electronic devices, including smartphones, tablets, PCs, smartwatches, and TV boxes, among others, with the majority of revenue coming from the iPhone…

Apple Inc.’s (AAPL) Services and Wearables businesses are expected to drive sales growth this year. In fact, the Services segment has emerged as the company’s new cash cow. AAPL’s entrance into autonomous vehicles and augmented reality could serve as a long-term growth opportunity.

The company had a whopping $70 billion in cash on hand as of the most reported quarter. This certainly compares favorably to its short-term debt of $13 billion. AAPL also has very high return on equity (110.3%) and ROIC (41.4%) ratios.

Over the past year, sales are up 21.4%, while earnings rose 39.8%. Revenue is expected to rise 21.9% year over year this quarter, while earnings are forecasted to soar 54.7%. From a valuation standpoint, the stock appears a tad overvalued, with a forward P/E of 23.92.

While AAPL’s stock is up over 50% in the past year, its recent performance has been mixed as shown in the chart below.

Take a look at the 1-year chart of AAPL below with added notations…

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