Apple Inc. reports quarterly earnings after the closing bell on Tuesday, May 1, with the stock below quarterly, semiannual and quarterly risky levels, along with the challenge of a negative weekly chart. Most investors call Apple a value play, as they say that the P/E ratio is reasonable at 16.16. I liked Apple as a value stock when its P/E ratio was 12.00 and lower. Therefore, I now look at Apple as a momentum stock that has lost its mojo. A wildcard for investors would be a surprise special dividend, but that is a benefit for those with long-term core holdings.
Analysts expect Apple to post earnings per share between $2.69 and $2.80 when the company reports results on Tuesday. Some say that the concerns surrounding sales of the iconic iPhone are real and that the company doesn’t have another hot product to pick up the slack. In bean counting iPhone sales, the consensus estimate is for 53 million units sold in the first quarter of 2018 versus 62 million in the fourth quarter of 2017.
Let’s explore the daily and weekly charts for Apple and establish updated trading strategies. Apple closed Friday at $162.32, down 4.1% year to date and in correction territory at 11.5% below its all-time intraday high of $183.50 set on March 13. The stock is 8% above its Feb. 9 low of $150.24. (See also: Samsung’s Warning Could Spell Bad News for Apple.)
Some say Apple is cheap with a P/E ratio of 16.68 and a dividend yield of 1.55%, but the charts do not agree! …read more
Read more here: Apple Reports Under Key Levels With Negative Chart