Apple A Buy Prior To Q1 Earnings Report
Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.
Apple is reporting Q1 earnings after close today, and as always this will be a closely watched report because it is so important to the Tech sector and various indices. Analysts expect a slight boost year-over-year with the consensus being $3.23/share--compared to the $3.06 posted last year. Apple forecast Q1 revenue somewhere between $75.5-77.5 billion--with the consensus revenue figure at $76.6 billion.
As always, the key metric for Apple with be iPhone sales. They're a smart phone giant that happens to also make computers, tablets, and streaming devices. And that smart phone helps bolster sales of all the other items in their inventory. Any stumble in iPhone sales will likely cause a bad reaction on the street. Rumours from key iPhone component suppliers vis-a-vis a slowdown in demand have been around for a while now. Anything less than 75 million iPhones sold for Christmas will be disappointing according to analysts.
Investors and analysts will also be looking at emerging market demand as an indicator of the health of the global economy. Apple has benefited in recent years from growth in China, and if recent events in China negatively impact the Apple bottom line, that could also set off a bad reaction.
Apple shares have been beat down recently, so this report could set the tone for 2016.
ValuEngine continues its BUY recommendation on APPLE INC for 2016-01-25. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
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ValuEngine Forecast |
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Target |
Expected |
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|---|---|---|
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1-Month |
100.00 | 0.56% |
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3-Month |
101.90 | 2.47% |
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6-Month |
103.27 | 3.85% |
|
1-Year |
106.09 | 6.69% |
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2-Year |
108.85 | 9.46% |
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3-Year |
113.87 | 14.51% |
ValuEngine Market Overview
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Summary of VE Stock Universe |
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|
Stocks Undervalued |
76.28% |
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Stocks Overvalued |
23.72% |
|
Stocks Undervalued by 20% |
43.51% |
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Stocks Overvalued by 20% |
7.31% |
ValuEngine Sector Overview
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Sector |
Change |
MTD |
YTD |
Valuation |
Last 12-MReturn |
P/E Ratio |
|
-0.83% |
-5.94% |
-5.94% |
3.00% undervalued |
-7.37% |
22.03 |
|
|
-1.71% |
-6.82% |
-6.82% |
5.83% undervalued |
-15.02% |
21.05 |
|
|
-1.63% |
-9.06% |
-7.76% |
9.68% undervalued |
-11.70% |
26.68 |
|
|
-1.33% |
-8.04% |
-8.04% |
10.39% undervalued |
-14.94% |
21.86 |
|
|
-0.80% |
-8.46% |
-8.46% |
10.59% undervalued |
-13.64% |
18.44 |
|
|
-1.73% |
-9.52% |
-9.52% |
13.17% undervalued |
-10.97% |
14.59 |
|
|
-1.51% |
-10.38% |
-10.38% |
13.24% undervalued |
-22.55% |
15.30 |
|
|
-1.17% |
-11.61% |
-11.61% |
14.74% undervalued |
-16.35% |
26.23 |
|
|
-1.31% |
-8.61% |
-8.61% |
15.18% undervalued |
-12.41% |
22.03 |
|
|
-1.36% |
-8.22% |
-8.22% |
16.28% undervalued |
-18.37% |
21.49 |
|
|
-2.12% |
-10.53% |
-10.53% |
16.75% undervalued |
-16.63% |
16.13 |
|
|
-2.07% |
-11.23% |
-11.23% |
24.60% undervalued |
-18.18% |
16.89 |
|
|
-1.78% |
-12.48% |
-12.50% |
25.52% undervalued |
-31.66% |
20.40 |
|
|
-2.54% |
-13.17% |
-13.17% |
25.85% undervalued |
-23.61% |
10.74 |
|
|
-4.00% |
-16.59% |
-16.59% |
28.60% undervalued |
-43.51% |
19.84 |
|
|
-1.97% |
-12.62% |
-12.62% |
28.87% undervalued |
-33.68% |
11.99 |
VALUATION WATCH: Overvalued stocks now make up 23.72% of our stocks assigned a valuation and 7.31% of those equities are calculated to be overvalued by 20% or more. Zero sectors are calculated to be overvalued.
Disclosure: None.
Disclaimer: ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, ...
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