Apple Inc. (NASDAQ:AAPL) has always been a desire for many investors. At the price of $148, the stock is attractively valued. However, investors may be concerned about the stock’s price performance.
Apple has some of the highest rates of return in the market. The return on equity stands at 149%. The return on assets is 29.64%. These ratios are an indication that Apple uses investor funds efficiently to generate returns.
The growth of Apple is because the company reinvests most of its earnings. From the EPS of $5.66, Apple only pays out $0.61 in dividends. The dividend payout ratio is among the lowest. It means that investors would be very keen on price performance.
The 52-week range for Apple is between $123 and $182. That places the current valuation of $148 right at the midpoint of the 52-week range. Further analysis shows that the stock faces resistance at $150 and support at $137.
Our analysis finds that investors should consider buying Apple at the current levels. The bear market puts Apple within reach of many investors who would otherwise be priced out. Apple remains attractive for its value.
Apple is trading below the trend channel
Source – TradingView
The price chart shows Apple trading below the linear regression channel. Last week, the stock gained 8.76%, from $137 to $149. The stock reaffirmed the resistance level of $150. It shows that the spread between the support and resistance levels can be closed in a single trading session. If the stock crosses above $150, then it will take flight and establish new levels.
Summary
Buying Apple at prices below $150 is recommended. While the stock faces resistance at this level, we think it will break out soon. In the meantime, the investor should take advantage of the low prices.
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