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, AirPods, and TV boxes, among others, with the iPhone making up the majority of total revenue. In addition, the company also offers a variety of services such as Apple Music, Apple TV+, and Apple Pay, among others…

Apple Inc. (AAPL) saw continued momentum in its Services and segment and strong performance from iPhone, iPad, Mac and Wearables in the most recent quarter. However, manufacturing disruptions and silicon shortages are expected to have a negative effect in the next quarter. Growth in its Services segment is also expected to decline.

AAPL has a strong balance reflected by its $62.6 billion cash balance at the end of the most recent quarter. This compares favorably to its short-term debt of $15.6 billion and has led to a Quality Grade of B in our POWR Ratings system. Analysts expect earnings to rise 11.9% year-over-year in the current quarter and fall -5.7% in the following quarter.

The stock looks a tad overvalued with a forward P/E of 26.81. AAPL was showing bullish momentum from early June through early September, before performance dipped in September. The stock rebounded in October, but performance has been mixed since as shown in the chart below.

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

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