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Apple Inc. (NASDAQ: AAPL) Hits A Peak?

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It seems sluggish job data and rising conflict with North Koreas is creating a panic on Wall Street. It’s quite noticeable that investors are losing confidence with each passing moment and the money is moving to safer bets including bonds and commodities like gold. However, there are certain stocks that are still giving investors some hope.

Due to the recent activity, it’s worth taking a note of Apple Inc. (NASDAQ: AAPL).

Shares of Apple Inc. (NASDAQ: AAPL) are currently trading at $159.37 with a change of 0.44% from the open. More than 10,687,493 shares exchanged hands today compared to an average daily volume of 26.73M shares.

With access to so much information, many investors get lost in the details, but if you know where to look, you can make more informed investing decisions.We are going to take a close look at Apple Inc. (NASDAQ: AAPL) today to get a better sense of the company and its current status, as well as the opportunity it may offer for prospective investors.

Today’s focus will be a fundamental evaluation of the stock from top to bottom.

Revenue trends.

Last quarter, the company saw its overall sales move to 45.26B in total revenues. That represents an overall change in revenues, on a quarterly year/year basis, of 0.07%. If we translate that into sequential terms, the company saw sales decline by -0.16% from quarter to quarter.

While revenue analysis gives us a strong sense of changing demand trends in the company’s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company’s bottom line data.

Apple Inc. (NASDAQ: AAPL) is intriguing when broken down to its core data. The cost of selling goods last quarter was 27.99B, yielding a gross basic income of 17.27B. For shareholders, given the total diluted outstanding shares of 5.23B, this means an overall earnings per share of 1.67.

Note, this compares with a consensus analyst forecast of 3.82 in earnings per share for its next fiscal quarterly report.

Next, let’s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow.

At present, analysts hold a consensus average recommendation of Overweight. This is based on a total of 37. While we don’t suggest taking analyst recommendations as face value plans for action in a portfolio, we do think it is important to note where consensus is on a stock to understand what basic assumptions are perhaps already discounted into market pricing of shares of the stock.

As far as price targets, analysts currently have an average target on shares of at 176.26. In addition, if we turn to next year, we see estimates of a fiscal year forecast to bring about 10.87 in total earnings per share. On a median price to earnings ratio basis, that outlook adds up to a valuation of 14.60 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward.

However, we would be remiss if we did not also take a quick look at cash flows and the company’s balance sheet to round out our perspective on the name.

As the reader is no doubt aware, for any company, balance sheet health sits at the heart of the company’s capacity to stand up to the demands and obligations incurred by normal and contingent operations, which in turn lies at the core of a company’s ability to retain the faith of investors in the marketplace. For NASDAQ: AAPL, the company presently holds about 17.68B in cash in the coffers. That cash is balanced against about 18.48B in total current liabilities.

It’s important to consider both a static and dynamic picture, particularly where debt levels are concerned. This means, we need to take into account any trends. In this case, the company’s debt has been growing.

The company also has 345.17B in total assets, balanced by 212.75B in total liabilities, which suggests where this story might go under adverse economic or financial conditions.

As far as cash flows, the company saw a free cash flow last quarter of 6.09B, representing a quarterly net change in cash of 3.41B. On a net operating level, the company saw about 8.36B in cash flow.

Stay tuned while we work on getting you updates on Apple Inc. (NASDAQ: AAPL) as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Facebook, Inc. (FB) beta you simply cannot ignore

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. Stock of Facebook, Inc. (FB) opened at $177.30 and last traded at $178.41 x 200. More than 2,643,177 shares exchanged hands compared to an average daily volume of 16,216,728 shares. At the current pps, the market capitalization stands at 518.208B.

Let’s take a look at how the stock has performed this year so far. Facebook, Inc has moved -0.98% in the last 5 days or -0.68% in the last 1 month. In long-term, Facebook, Inc has changed 4.33% in 3 months and  47.94% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Facebook, Inc. (FB) currently has a Beta value of 1.21 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Facebook, Inc current P/E ratio. Facebook, Inc. (FB) currently has a PE ratio of 34.55. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Facebook, Inc beta and P/E ratio, the EPS cannot be ignored. Facebook, Inc EPS for the trailing twelve months was 5.16. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Facebook, Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Facebook, Inc. (FB) has received an average target price from analysts of $207.41 amounting to a recommendation rating of Buy. That comes from 46 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 30.44. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 26.84 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 37.00. That shift to 25.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Investors Should Consider Apple Inc. (AAPL) Beta Values Before Final Decision

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. Stock of Apple Inc. (AAPL) opened at $172.50 and last traded at $173.400 x 500. More than 5,069,667 shares exchanged hands compared to an average daily volume of 28,052,767 shares. At the current pps, the market capitalization stands at 886.952B.

Let’s take a look at how the stock has performed this year so far. Apple Inc has moved 2.03% in the last 5 days or 0.97% in the last 1 month. In long-term, Apple Inc has changed 9.15% in 3 months and  49.16% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Apple Inc. (AAPL) currently has a Beta value of 0.99 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Apple Inc current P/E ratio. Apple Inc. (AAPL) currently has a PE ratio of 18.76. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Apple Inc beta and P/E ratio, the EPS cannot be ignored. Apple Inc EPS for the trailing twelve months was 9.210. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Apple Inc is estimated to release its next earnings report on 9 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Apple Inc. (AAPL) has received an average target price from analysts of $190.70 amounting to a recommendation rating of Overweight. That comes from 39 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 15.00. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 14.11 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 32.00. That shift to 31.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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PayPal Holdings, Inc. (PYPL) Could Be In For A Major Breakout

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. Stock of PayPal Holdings, Inc. (PYPL) opened at $74.08 and last traded at $75.39 x 200. More than 1,483,443 shares exchanged hands compared to an average daily volume of 9,389,196 shares. At the current pps, the market capitalization stands at 89.771B.

Let’s take a look at how the stock has performed this year so far. PayPal Holdings, Inc has moved 1.36% in the last 5 days or -3.87% in the last 1 month. In long-term, PayPal Holdings, Inc has changed 20.00% in 3 months and  88.90% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. PayPal Holdings, Inc. (PYPL) currently has a Beta value of 1.21 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at PayPal Holdings, Inc current P/E ratio. PayPal Holdings, Inc. (PYPL) currently has a PE ratio of 58.35. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at PayPal Holdings, Inc beta and P/E ratio, the EPS cannot be ignored. PayPal Holdings, Inc EPS for the trailing twelve months was 1.28. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. PayPal Holdings, Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

PayPal Holdings, Inc. (PYPL) has received an average target price from analysts of $79.77 amounting to a recommendation rating of Overweight. That comes from 47 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 38.99. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 32.26 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 44.00. That shift to 36.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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