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Apple stock continues to outperform the market despite Omicron fears

Apple stock continues to outperform the market despite Omicron fears
Jordan
Major
7 months ago
4 mins read

Apple’s (NASDAQ: AAPL) stock was marginally down at $164.77 -0.53 (-0.32%) by market close on Wednesday, although it is still up +4.16 (2.59%) over the past five days.

In particular, Apple is ahead of the broader market for the first time since late January and by a sizable margin versus the Nasdaq composite.

AAPL is presently on its way to setting a new 52-week high, which is a highly positive sign for investors, especially given the fact that the S&P 500 is trading at the higher portion of its 52-week range, so AAPL is outperforming the rest of the market. 

In the market, AAPL has been trading in a broad range of prices during the previous month, ranging from $147.48 to $170.30, which is significant, although it is now trading around the upper end of this range. 

Apple chart analysis

Notably, the world’s biggest company by net worth is trading above its 20, 50, and 200-day simple moving averages, typically utilized by stock investors as uptrend indications.

As a result of its recent performance and a price above the 20-day SMA, it appears that the firm’s short-term positive momentum might push it to try and break above the $170 level if the recent volume is maintained.

AAPL 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Volume has increased significantly during the previous few days, and both the long-term and short-term trends are encouraging, but Apple does not provide a high-quality setup at present.

The price movement has been a touch too unpredictable to discover a good entry point; hence in this scenario, it is usually best to hold off until there is some consolidation with the stock.

Nonetheless, the first support level is a zone spanning from $159.49 to $160.34, which is generated by a combination of multiple trend lines and major moving averages in the daily time frame.

The view from Wall Street

Compared to the general market, AAPL is exhibiting solid and consistent performance throughout a range of time periods, including short and long-term, and experts seem to have taken note of this.

As determined by the 27 Wall Street analysts that have provided 12-month price predictions for Apple during the past three months, AAPL stock has a median price goal of $168, with a high forecast of $200 and a low prediction of $90.00.

AAPL analysts’ price target. Source: TipRanks.com

Twenty-one TipRanks experts have reiterated their ‘Buy’ recommendations for AAPL in the past three months, while five have recommended ‘Hold.’ Only one analyst advocates to ‘Sell’

As a result, Apple is considered a sensible investment by the majority of analysts who gave ratings with an increase of 1.96% for the average price target from the latest price of $164.77. 

Previously we reported that JPMorgan set a $175 price target for Apple due to an increase in iPhone 12 manufacturing estimates and the ongoing strength of Apple’s Mac range. Since then, Apple’s stock has continued to climb closer to this target hitting new all-time highs amid recent autonomous car reports.

Apple holds firm despite Omicron concerns

As Omicron worries continue to grow, Apple may be the kind of company that investors are looking for right now.

If this is the case, Apple is expected to continue to do better than the majority of other companies in the face of market adversity. Notably, AAPL rebounded from the February-March bear market in approximately half the time it took the S&P 500 to accomplish the same in the early phases of the COVID-19 crisis.

Nevertheless, depending on market mood over the next several weeks and the speed with which the current Covid version is addressed, efforts to lock in gains might work against AAPL and its investors. Therefore, investors looking to own the stock for the long run will need to keep a careful eye on AAPL to see whether the stock falls below the $160 level.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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