Apple Stock Ripe For Another Buy Point

Apple Inc

Apple Inc

AAPL

$4.13


2.37%


21%

IBD Stock Analysis

• Apple stock broke out of a double-bottom base last week
• It’s now forming a handle with a 179.71 buy point
• Relative strength line carving new highs vs. S&P 500

Composite Rating

Industry Group Ranking

Emerging Pattern

Double Bottom

* Not real-time data. All data shown was captured at
1:58PM EDT on
04/04/2022.

Apple (AAPL) is the IBD Stock Of The Day as the consumer electronics giant appears set for its second potential buy point in as many weeks. Apple stock rose on Monday.

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On the stock market today, Apple stock climbed 2.4% to close at 178.44. However, trading volume was well below average.

Last Tuesday, Apple stock broke out of a double-bottom base at a buy point of 176.75, according to IBD MarketSmith charts. It has since retreated modestly and could be forming a handle. A proper handle requires a pullback of at least five days. Tuesday would make the fifth day, assuming the stock doesn’t eclipse its recent high.

The buy point from the new handle would be 179.71, based on IBD trading principles.

Apple Stock Consolidating

The recent movement of Apple stock is within a 13-week consolidation pattern. The consolidation pattern has a buy point of 183.04, according to MarketSmith charts. That buy point is 10 cents above the stock’s all-time high of 182.94, reached on Jan. 4.

Cupertino, Calif.-based Apple is riding high on strong demand for its second-generation 5G smartphones, the iPhone 13 series.

Also, the company’s subscription video-on-demand service, Apple TV+, won a Best Picture Oscar for “CODA” at the Academy Awards on March 27.

In a bullish sign, the relative strength line for Apple stock is carving new highs as it outperforms the S&P 500.

Apple stock has an IBD Relative Strength Rating of 90 out of 99. That means it has outperformed 90% of stocks over the past 12 months.

IBD Stock Checkup gives Apple stock an IBD Composite Rating of 94 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Apple Services Are ‘Key Differentiator’

In a note to clients on Sunday, UBS analyst David Vogt reiterated his buy rating on Apple stock with a price target of 185.

He said Apple’s services business is a “key differentiator in the smartphone market.” Vogt pointed to recent survey results that showed a “sticky” iPhone ecosystem with strong customer retention.

The UBS survey showed robust adoption of services such as Apple Pay, Apple Music, iCloud and hardware warranties.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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