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Analysis of Apple (AAPL) Ahead of Q4 2015 Earnings

All eyes are on Apple $AAPL and iPhone sales as the company report earnings after close on Tuesday (1/26). Analysts are worried that iPhone sales are on the decline and shares have fallen over 16% over the past 3 months. Will Apple be able to meet last years holiday quarter, or is the company shifting from a growth company to a value company?

Fundamental Analysis

Using the Comparison Analyzer available for SprinkleBit Premium members, we have measured Apple up against Microsoft $MSFT, Alphabet $GOOGL, IBM $IBM, and Hewlett Packard $HPQ.

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From a fundamental perspective Apple looks to be severely undervalued in comparison to its peers. In our analysis we compared Ebitda Multiple, MarketCap to Total Assets and P/E. The analyzer calculated Apples’ value  based on Financial Fundamentals in comparison to competitors to be $202.38. With today’s (Monday 1/25) closing price of $99.49, the analyzer is telling us that the Apple stock is undervalued with 103.04%

Technical Analysis

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The technical analysis shows that with today’s (Monday 1/25)  closing price of $99.49, the stock has a potential 4.5% downside risk, and a potential 9.5% upside reward. On an earnings miss, the stock can fall to $95, while on an earnings beat, Apple $AAPL has the potential to rise to $109.

 

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I am a swing/momentum stock and options trader, and trade mostly tech and consumer trend stocks. I am an entrepreneur and DYI investor seeking financial wealth on my own premises.

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