“Apple shares jumped Wednesday to touch yet another new high,” Benjamin Rains writes for Zacks. “Aside from buzz surrounding its new iPhones and its updated Apple Watch, Apple stock looks like a buy even as its stock price continues to climb.”
“The iPhone will remain Apple’s single largest money maker for the foreseeable future, but the company’s Services unit, made up of AppleCare, Apple Pay, and Apple Music, has grown. Last quarter this key division’s revenues jumped 31% to $9.548 billion,” Rains writes. “Investors should be pleased as the fintech industry and the streaming music market look poised to expand. Plus, Apple’s less-talked-about ‘Other Products’ unit, which features AirPods, Apple TV, Apple Watch, Beats products, and HomePod, also climbed 37% to reach $3.74 billion. And Apple’s plan to enter the streaming TV market could prove to be a game-changer for the company as its service could easily thrive alongside Netflix, Amazon, Hulu, and Disney.”
“Our current Zacks Consensus Estimate is calling for Apple’s fiscal fourth-quarter revenues to jump nearly 17% to hit $61.40 billion. At the other end of the income statement, Apple is expected to see its adjusted Q4 earnings surge by roughly 33.8% to hit $2.77 per share. Meanwhile, Apple’s full-year EPS figure is projected to climb by 27.7%,” Rains writes. “This strong earnings revision trend helps Apple earn a Zacks Rank #2 (Buy). The company also boasts an “A” grade for Momentum and a “B” for Growth in our Style Scores system. Therefore, Apple stock might be worth buying even at its new highs because it looks poised to grow and expand into booming industries.”
Read more in the full article here.
MacDailyNews Note: Apple is set to release Q418 results on Thursday, November 1, 2018 at market close and will hold a conference call with analysts shortly thereafter at 2:00 p.m. PT / 5:00 p.m. ET.
If you adjust for EGG (+-BUN), AAPL still has around 8% headroom in its BACN trajectory, I.e. soft buy going into Q4.
Be sure to check the PEPR index for marginal SNIZ volatility to mitigate any risks.
Dow, S&P500, NASDAQ all sharply down.
Has the 2009-2018 bull market begun to run out of steam?
A little quick on the trigger there, don’t you think?
Hiccup… $228. Maybe it’s time for Buffett to take another bite of the Apple and Apple can buyback some more stock. How likely is it for Apple stock to go back down to $220 with the holiday season approaching and another Apple event coming? This may be as low as it’s going. It’s hard to tell. However, it means nothing to me. I’m holding because I enjoy the dividends.
I can hardly wait for Apple to start a bundled streaming service. It should at least do better than Hulu if the pricing is decent enough.
Annnnd it plummets.
Less advice please.
Apple’s stock broke out of a bullish technical pattern – known as a wedge – at the end of September. The stock has also risen recently above another level of technical resistance at around $230. Given the breakout, the stock is in a strong position to
rise about 10% to $255. That’s where the stock will hit its next level of technical resistance.