Mojo Shifting for Apple, Amazon and Google
On Jan. 3, I wrote Polishing Apple's Profile for 2013 and on Monday Apple gapped lower trading below my annual value level at $510.64, which is now a magnet for the remainder of 2013. Apple remains "four-engine" buy rated according to www.ValuEngine.com with fair value at $600.49, which makes the stock 16.4% undervalued in the computer & technology sector, which is 12.4% overvalued.
At Apple's all-time high of $705.07 on Sept. 21 the stock tested the ValuEngine one-year price target at that time. Today the one-year price target is $533.46, which is a projected gain of 6.3% setting the buy rating.
Even after Monday's price break Apple is still up 20.6% over the last 12 months and now has a 12 month forward price-to-earnings ratio of just 9.6. Apple reports its Q4 quarterly results on Jan. 23 and Wall Street analysts project that the company will earn $13.43 per share. It will be important to track whether or not this EPS estimate is lowered over the next week. Despite a price decline from above $700 to below $500 most analysts stubbornly keep their lofty ratings and price targets with a median price target of $745 and 21 strong buy and 28 buy ratings, six hold ratings, and only two underperform and one sell rating.
The daily chart for Apple ($501.75) is negative and the weekly chart shows oversold Mojo with the stock below its five-week modified moving average at $530.44. My semiannual and annual value levels are $470.21 and $421.05 with my annual pivot at $510.64 with weekly, monthly, and semiannual risky levels at $538.18, $604.86 and $651.60.
Amazon remains "three-engine" hold rated according to ValuEngine with fair value at $208.84, which makes the stock 30.6% overvalued in the retail-wholesale sector, which is 11.6% overvalued.
Amazon set an all time high of $274.26 on Monday versus the ValuEngine one-year price target at $281.26, which limits the upside potential. The stock is up 52.9% over the last 12 months and has a ludicrous 12 month forward P/E of 157.5. Amazon reports its Q4 quarterly results on Feb. 5 and Wall Street analysts project that the company will earn 29 cents per share. Wall Street analysts have a median price target at $290 with 12 strong buy ratings, 15 buys, 10 holds and one underperform.