IBD Stock Analysis
- Shares broke out of cup-with-handle base in Wednesday trades
- Buy point for stock now stands at 153.26, and extends to 160.92
- Relative strength line, however, has underperformed S&P index
Industry Group Ranking
Emerging Pattern
Cup with Handle
* Not real-time data. All data shown was captured at
1:29PM EST on
11/17/2021.
Apple (AAPL) is the IBD Stock Of The Day as the consumer electronics giant enjoys strong consumer demand ahead of the holiday shopping season. Apple stock broke out of a 10-week base on Wednesday.
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In morning trading on the stock market today, Apple stock broke out of a cup-with-handle base at a buy point of 153.26, according to IBD MarketSmith charts. The 5% buy zone of the breakout extends to 160.92. In afternoon trading, Apple stock rose 2.1% to 154.23.
Over the past year, Apple stock has been creeping higher in fits and starts. But for the past four months, it generally has been moving sideways. That’s evident in Apple’s relative strength line, which has stalled as it underperforms the S&P 500 index.
Apple stock pulled back after the Cupertino, Calif.-based company reported September-quarter results late on Oct. 28. It matched views on earnings but missed its sales target due to supply-chain constraints. Apple warned of further product shortages in the December quarter.
Big Holiday Season Forecast
However, demand for the company’s latest products, including its iPhone 13 handsets, remains strong, analysts say.
“We estimate that Apple is on pace to sell about 40 million iPhones between Black Friday and Christmas, which would be a record holiday pace for the company despite the lingering chip shortage limiting iPhone supply globally by roughly 10 million units based on our analysis,” Wedbush Securities analyst Daniel Ives said in a note to clients Tuesday.
Ives reiterated his outperform rating on Apple stock with a price target of 185.
Meanwhile, Apple’s AirPods wireless earbuds are poised for a strong holiday season as well, Ives said. He estimates that AirPods could make up 5% of total revenue for Apple in fiscal 2022. The company introduced its third-generation AirPods on Oct. 18.
Apple Stock Added To SwingTrader
Apple stock has a decent IBD Composite Rating of 84 out of 99, according to IBD Stock Checkup. That means it has outperformed 84% of stocks in key fundamental and technical metrics over the past 12 months.
However, its IBD Relative Strength Rating is a lackluster 65 out of 99. The Relative Strength Rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks. The best growth stocks typically have RS Ratings of at least 80.
Investor’s Business Daily added Apple stock to its SwingTrader watchlist on Wednesday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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