Bobbing for Apple, Amazon and Google Shares
On Jan. 15, I wrote Mojo Shifting for Apple, Amazon and Google where I profiled these names pre-earnings. Since then, Apple traded to a new 52-week low at $435.00 on Jan. 25, after beating earnings expectations by 37 cents a share reporting $13.81 EPS.
Also on Jan. 25, Amazon.com set a new all-time at $284.72. On Jan. 29 the company missed earnings expectations by 9 cents a share on 21 cents EPS. Amazon traded as high as $288.00 in after-hours trading on Jan. 29, but the high on Jan. 30 was just $284.20.
Google beat earnings expectations by 41 cents a share reporting $9.02 EPS after the close on Jan. 22. The stock closed that day at $702.87 and opened at $735.99 on Jan. 23 and continued to the upside with a new all-time high at $776.60 set on Feb. 1.
Dow Industrials closed above 14,000 Friday with the yield on the U.S. Treasury 30-year bond approaching 3.25%. As a result, 65% of all stocks were overvalued. Because of this fundamental downgrade, www.ValuEngine.com issued a ValuEngine Valuation Warning.
Bobbing for Apple Shares: Apple ($442.32) is bucking the market trend with a buy rating with the stock 23.8% undervalued with fair value at $580.79. Apple has a 12 months forward price-to-earnings ratio of just 9.00. Apple set an all time high at $705.07 on Sept. 21 when ValuEngine had $700.00 as its one-year price target. At the 52-week low of $435.00 set on Jan. 25, the stock was down 38.3% from top to bottom.
Apple is extremely oversold with its 12x3x3 weekly slow stochastic reading is 11.09 on a scale of 00.00 to 100.00 where a reading under 20.00 is oversold. My annual value level is $421.05 with a weekly pivot at $451.89, a semiannual pivot at $470.21 and annual risky level at $510.64.
Sell Strength on Amazon: Amazon.com ($259.98) has a hold rating, is 4.8%% overvalued with fair value at $248.04, and a 12 months forward P/E of 117.76. Monday's share price weakness has Amazon showing a 12x3x3 weekly slow stochastic reading at 79.66 down from 82.04 last week. A close this week below its five-week modified moving average at $262.13 with Mojo falling below 80.00 will be a technical sell signal for the stock. Semiannual and annual value levels are $241.23 and $226.80 with a quarterly pivot at $255.75 and weekly and monthly risky levels at $272.17 and $282.88.
Buy and Trade Levels for Google: Google ($759.02) has a hold rating, is 8.3% overvalued with fair value at $700.58, and a 12 months forward P/E of 17.12. Google has a 12x3x3 weekly slow stochastic reading that's rising at 76.24 from 71.87 last week so its weekly chart is not yet overbought, and stays positive with a close this week above its five-week modified moving average at $735.58. My quarterly value level is $660.40 with weekly and monthly risky levels at $783.56 and $808.04.