Apple Joins Others Behind the Woodshed
While many old economy stocks of the Dow Industrials and Dow Transports probe for new high Apple (AAPL) , the former MOJO king is in transformation to being a value stock, as investors learn that apple trees do not grow to the sky. On Friday, Apple returned to the woodshed with a new 52-week low of $429.98, now down 39% since setting last September's all-time high at $705.07.
Apple ($430.47) still has a buy rating, is 26.5% undervalued with a twelve month trailing P/E ratio at 9.8. The weekly chart profile remains extremely oversold with the five-week modified moving average (MMA) at $470.71. My annual value level remains $421.05 with a semiannual pivot at $470.21, and annual risky level at $510.64. This week's value level is $397.60.
At www.ValuEngine.com, we show that 59.3% of all stocks are overvalued with 15 of 16 sectors overvalued 8 by double-digit percentages. Today's profiles of 10 stocks are in six overvalued sectors: Computer and technology by 12.3%; construction by 22.5%; consumer discretionary by 7.1%' oils-energy by 0.9%; retail-wholesale by 9.9%; and transportation by 18.6%.
Reading the Table
OV / UN Valued : The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating : A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy.
Last 12-Month Return (%) : Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage.
Forecast 1-Year Return : Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.
Value Level : is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.