AAPL Stock: Apple Inc Active Stock Evaluation


Expectations of tax reform have been a positive for stocks this year, as a tax-code overhaul would potentially lower corporate taxes. The S&P 500 is up more than 15 percent in 2017. (Source: CNBC)

Major News: AT&T Inc. (T) stock inclined 0.38% to trade at $34.64 on Monday. However, the stock fell -0.75% to $34.38 during an after-hours trade. The Justice Department is suing AT&T to stop its $85 billion purchase of Time Warner, setting the stage for an epic legal battle with the telecom giant.

It could also create a new headache for President Donald Trump, whose public statements have raised suspicions that he might have interfered with the department’s decision, potentially undermining its legal case. DOJ’s antitrust chief, Makan Delrahim, has said the president did not tell him what to do. White House spokeswoman Sarah Huckabee Sanders said Monday she wasn’t aware of any specific action related to the case taken by the White House.

In a press release, Delrahim said that a combined AT&T-Time Warner would “greatly harm American consumers” by hiking television bills and hampering innovation, particularly in online television service. The DOJ said AT&T would be able to charge rival distributors such as cable companies “hundreds of millions of dollars more per year” for Time Warner’s programming — payments that would ultimately get passed down to consumers through their cable bills.

In an emailed statement Monday, AT&T general counsel David McAtee said the lawsuit is a “radical and inexplicable departure from decades of antitrust precedent” and that the company is confident that it will prevail in court. (Source: AP)

A total volume of 31.26M shares was traded. The Company’s shares have declined -2.53% in the past month, -7.77% in the last twelve months, and -18.55% on an YTD basis.

Top Pick for Tuesday: Apple Inc. (NASDAQ: AAPL)

Apple Inc. (NASDAQ: AAPL) has grabbed attention from the analysts when it experienced a change of -0.10% in the last trading session to close at $169.98. A total of 16,038,804 shares exchanged hands during the intra-day trade contrast with its average trading volume of 28.06M shares, while its relative volume stands at 0.57. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Apple Inc. (NASDAQ: AAPL) stock is found to be 1.01% volatile for the week, while 1.43% volatility is recorded for the month.

Apple Inc. audio engineers had been working on an early version of the HomePod speaker for about two years in 2014 when they were blindsided by the Echo, a smart speaker from Amazon.com Inc. with a voice-activated assistant named Alexa. The Apple engineers jokingly accused one another of leaking details of their project to Amazon, then bought Echos so they could take them apart and see how they were put together. They quickly deemed the Echo’s sound quality inferior and got back to work building a better speaker. (Source: Bloomberg)

Technical’s Snapshot:

The stock has a market cap of $877.60B and the number of outstanding shares has been calculated 5.16B. Based on a recent bid, its distance from 20 days simple moving average is 1.03%, and its distance from 50 days simple moving average is 5.51% while it has a distance of 12.60% from the 200 days simple moving average. The company’s distance from 52-week high price is -3.55% and the current price is 57.03% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 58.31 together with Average True Range (ATR 14) of 2.52.

Stock’s Valuation:

Past 5 years growth of AAPL observed at 7.90%, and for the next five years the analysts that follow this company is expecting its growth at 10.70%. The stock’s price to sales ratio for trailing twelve months is 3.83 and price to book ratio for the most recent quarter is 6.53, whereas price to cash per share for the most recent quarter are 11.83. Its quick ratio for the most recent quarter is 1.20. Analysts mean recommendation for the stock is 1.90. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.


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