IBD Stock Analysis
- Apple stock was forming consolidation with buy point of 183.04
- Recent retreat in shares created a handle with new entry at 176.25
- Aggressive entry available after bullish bounce off the 21-day line
Industry Group Ranking
Emerging Pattern
Consolidation
* Not real-time data. All data shown was captured at
1:10PM EDT on
08/24/2022.
Apple (AAPL) is the IBD Stock Of The Day as the consumer electronics giant prepares to unveil its iPhone 14 smartphones and other devices at a product launch next month. Meanwhile, Apple stock has set a new, lower buy point amid the recent market pullback.
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In afternoon trading on the stock market today, Apple stock rose a fraction to 167.34.
Apple stock has been climbing since its better-than-expected report for the June quarter. Strong iPhone sales and services revenue drove the company’s outperformance in its fiscal third quarter, which ended June 25.
Next up for the Cupertino, Calif.-based company is its fall product launch event, scheduled for Sept. 7. Apple sent out invitations for the event to the media and analysts on Tuesday. In addition to the iPhone 14 series handsets, Apple is likely to introduce new smartwatches at the event, the Apple Watch Series 8 wearables.
Apple Stock Forms Handle
Apple stock is in a 34-week consolidation pattern with a buy point of 183.04, according to IBD MarketSmith charts. That buy point is 10 cents above the stock’s all-time high of 182.94 reached on Jan. 4, based on IBD trading guidelines.
However, with a recent retreat in the shares, Apple stock has formed a handle with a new buy point of 176.25.
Aggressive investors also could have picked up Apple stock after a bullish bounce off its 21-day line.
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In a positive development, the relative strength line for Apple stock has been hitting new highs as it outperforms the S&P 500. The action is highlighted with a blue dot on a weekly chart on MarketSmith.
Apple Ups iPhone 14 Orders
On Tuesday, Susquehanna Financial Group analyst Mehdi Hosseini said Apple has increased its iPhone 14 build plans for the December quarter. Apple has confidence in increased iPhone sales because of market-share gains, especially in China, he said in a note to clients.
Apple now plans to produce about 100 million iPhone 14 handsets in the second half of the calendar year, up from its prior target of 88 million, Hosseini said. The new production target is above the 91 million iPhone 13 units built in the same period last year, he said.
Apple stock has an IBD Composite Rating of 91 out of 99, according to IBD Stock Checkup. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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