Apple stock: buy or sell?

AAPL stock price: $236.41 0.48% At close on October 18th, 2019

Updated on:
October 18th, 2019

5

Apple grew 0.48% on October 18th to $236.41 after marking all time highs on Monday.

Should I buy Apple stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Apple stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Apple stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for AAPL stock in the last month.

The general sentiment of these ratings is bullish for AAPL stock, with 8 positive ratings.
Is AAPL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Wedbushn/aOutperform
2019-9-30JPMorgan Chase & Co.n/aBuy
2019-9-26UBS Groupn/aBuy
2019-9-26HSBCn/aSell
2019-9-24Wedbushn/aBuy
2019-9-24Jefferies Financial GroupHoldBuy
2019-9-20Credit Suisse Groupn/aNeutral
2019-9-20Cascend Securitiesn/aBuy
2019-9-18Morgan Stanleyn/aBuy
2019-9-13Goldman Sachs Groupn/aNeutral
2019-9-12Morgan Stanleyn/aBuy
2019-9-11Needham & Company LLCn/aStrong-Buy
2019-9-11Maxim Groupn/aHold
2019-9-11DZ Bankn/aNeutral
2019-9-11BarclaysEqual WeightAverage

Apple stock analysis

Daily outlook

After reaching all time highs on Monday, Apple grew 0.48% on October/18 to $236.41.

Apple grew 0.48% on October/18 to $236.41 after reaching all time highs on Monday. Since last June when SMA100d and SMA200d crossed up, AAPL price gained $41.58 per share (21.34%). Since June when AAPL stock price broke up the SMA200d line, it gained $51.89 (28.12%). On Monday, AAPL hit new all time highs, pushing higher previous ATH of $237.64 recorded on October 11th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

AAPL stock chart (daily)

Weekly outlook

Apple remained stable 0.08% this week and touched a new all time high at $238.13. Counting this, it's been 4 green weeks in a row, gaining $18.68 or 8.54%.

AAPL shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late September, AAPL climbed unceasignly breaking out to new all time highs. Since SMA20d and SMA40w crossed up by mid June, AAPL price climbed $44.40 per share (23.12%). Since early June when AAPL stock price broke up the SMA40w line, it gained $62.00 (35.55%).

AAPL stock chart (weekly)

Apple stock price history

Apple stock went public on December 12th, 1980 with a price of $0.411. Since then, AAPL stock surged a 57,561.00%, with a yearly average of 1,514.80%. If you had invested right after AAPL's IPO a $1,000 in Apple stock in 1980, it would worth $575,610.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Apple stock historical price chart

AAPL stock reached all-time highs on Monday with a price of $238.13.

Apple's stock has split four times since the company went public: The stock split on a 7-for-1 basis on June 9, 2014 and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987. In June 2014 split, Apple split its shares' price to make it more accessible to smaller investors. Right before the split, each share was trading at $645.57. After the split, the price per share at market open was $92.70. Existing shareholders were also given six additional shares for each share owned, so an investor who owned 1,000 shares of AAPL pre-split would have 7,000 shares post-split.

Apple stock price target is $227.80

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 12 price predictions for Apple stock:
AAPL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-30JPMorgan Chase & Co.Set Price Targetn/a$265.00-
2019-9-26UBS GroupSet Price Targetn/a$235.00-
2019-9-26HSBCSet Price Targetn/a$190.00-
2019-9-24WedbushReiteratesn/a$245.00-
2019-9-20Credit Suisse GroupSet Price Targetn/a$209.00-
2019-9-20Cascend SecuritiesRaises Target$260.00$270.003.8%
2019-9-18Morgan StanleySet Price Targetn/a$247.00-
2019-9-13Goldman Sachs GroupLowers Target$187.00$165.00-11.8%
2019-9-12Morgan StanleySet Price Targetn/a$247.00-
2019-9-11Needham & Company LLCRaises Targetn/a$250.00-
2019-9-11Maxim GroupLowers Target$211.00$204.00-3.3%
2019-9-11BarclaysRaises Target$192.00$207.007.8%
(in average)$212.50$227.807.0%
Moving in a range from $270.00 and $165.00, the price prediction for AAPL stock is $227.80. In average, analysts' outlook on AAPL price target is positive, upgrading the target by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Apple published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will update this review.
AAPL earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.67n/a
2017-Q32017-11-021.872.0710.7%
2017-Q42018-02-013.863.890.8%
2018-Q12018-05-012.692.731.5%
2018-Q22018-07-312.172.347.8%
2018-Q32018-11-012.792.914.3%
2018-Q42019-01-294.174.180.2%
2019-Q12019-04-292.38n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an exceptional growth of 15.86% to $265,595.00 million dollars. When comparing 2018 vs 2017, by contrast, profit margin (that is, the net income divided by revenues) inched a 1.32% to 22.41%.

Apple fiscal year ends in September, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Apple TTM sales up to March 2019 were $258,490.00 and earnings $57,170.00 million USD. When comparing this TTM figures with the last reported annuality, we can esteem Apple business evolution since September 2018: Annual sales up to March, compared to lastest yearly report, declined a disappointing -2.68%. Regarding profit margin, Apple stayed steady -0.30% to 22.41%

AAPL annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$170,870 M-$37,040 M21.7%-
2014$182,795 M6.98%$39,510 M21.6%6.67%
2015$233,715 M27.86%$53,394 M22.8%35.14%
2016$215,639 M-7.73%$45,687 M21.2%-14.43%
2017$229,234 M6.30%$48,351 M21.1%5.83%
2018$265,595 M15.86%$59,531 M22.4%23.12%
TTM $258,490 M-2.68%$57,170 M22.1%-3.97%

Quarterly financial results

Apple reported $58,015.00 million in revenues for 2019-Q1, a -31.19% less compared to previous quarter. Reported quarter income marked $11,561.00 million with a profit margin of 19.93%. Profit margin slightly fell a -3.75% compared to previous quarter when profit margin was 23.68%. When comparing sales to same quarter last year, Apple sales marked a tragic decrease and dropped a -5.11%.
AAPL quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$45,260 M-$8,720 M19.3%-
2017-Q3$52,579 M16.17%$10,714 M20.4%22.87%
2017-Q4$88,293 M67.92%$20,065 M22.7%87.28%
2018-Q1$61,137 M-30.76%$13,822 M22.6%-31.11%
2018-Q2$53,265 M-12.88%$11,519 M21.6%-16.66%
2018-Q3$62,900 M18.09%$14,125 M22.5%22.62%
2018-Q4$84,310 M34.04%$19,965 M23.7%41.35%
2019-Q1$58,015 M-31.19%$11,561 M19.9%-42.09%

Apple ownership

When you are planning to invest in a company, it's always worth to check its ownership structure.

Apple shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.07% of all shares.

In case of Apple stock, 60.95% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AAPL stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Apple:

AAPLBBGOOGLHPQIBM
Market cap$1,068.6 B$2.8 B$372.7 B$24.9 B$118.8 B
Total shares4,520.0 M548.3 M299.5 M1,480.0 M885.9 M
Float shares4,260.0 M534.8 M621.7 M1,480.0 M884.5 M
  - Institutional holdings (%)61.0%54.4%81.0%83.9%57.5%
  - Insider holdings (%)0.1%0.7%0.2%0.2%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Apple summary

Friday, October 18th, 2019
Open$234.59
Close$236.41
Day range$234.29 - $237.58
Previous close$235.28
Session gain0.48%
Average true range$4.28
50d mov avg$217.54
100d mov avg$207.72
200d mov avg$193.71
Daily pattern
Weekly pattern lb03c

Apple performance

To better understand Apple performance you must compare its gains with other related stocks in same sector or industry. For Apple, the comparison is made against BlackBerry, Alphabet, HP, International Business Machines, Microsoft and Nokia.
Stock3m6m12m
AAPLApple17.14%16.86%9.47%
BBBlackBerry-28.25%-44.84%-45.49%
GOOGLAlphabet9.97%0.24%12.60%
HPQHP-20.56%-16.50%-27.02%
IBMInternational Bus...-9.36%-2.17%8.95%
MSFTMicrosoft0.91%12.16%28.44%
NOKNokia2.16%-8.61%-5.45%

Apple competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Apple. We selected 6 companies as Apple competitors as they are in the same industry or have similar market objectives.

Latest Apple stock news