AAPL Stock: Will Apple Continue to Fall?

Apple AAPL Store

Investors will focus their attention on AAPL stock after the close on Wednesday, April 26, as the company gears up for its latest quarterly report. Wall Street analysts are on average expecting the tech giant to post $52.01 billion in sales during the second quarter of 2016. This would show a 31.48% decrease from the Q116 revenue of $75.9 billion, as well as a decrease of 10.33% from the same period in Q215. EPS in Q216 are expected to come in at $2.00, a decline rate of 14.16% from $2.33 per share a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $2.04 per share.

As a quick reminder, Apple (AAPL) reported Q116 EPS of $3.28, $0.05 better than the Street’s consensus estimate. Revenue increased 1.74% YoY to $75.9 billion versus the $76.59 billion consensus.

On valuation measures, Apple shares currently have a PEG and forward P/E ratio of 1.08 and 10.62, respectively. Price/sales for the same period is 2.50, while EPS is $9.40. Currently there are 37 analysts that rate AAPL stock a ‘Buy’, 6 rate it a ‘Hold’. One analyst rates it a ‘Sell’. Apple shares have a median Street price target of $130 with a high target of $200.

AAPL Stock Trading metrics

In the past 52 weeks, shares of Cupertino, California-based company have traded between a low of $92.00 and a high of $134.54 with the 50-day MA and 200-day MA located at $106.77 and $107.31 levels, respectively. Additionally, shares of Apple trade at a P/E ratio of 1.08 and have a Relative Strength Index (RSI) and MACD indicator of 45.95 and -2.64, respectively.

It’s worth noting that even after its recovery over the last two months, AAPL stock is still down more than 21% compared to its 52-wkh set in April 28, 2015. The question now, especially after PPS nose dives from Google-parent Alphabet Inc (GOOGL) and Microsoft Corp (MSFT) following disappointing earnings results, is whether Apple’s Q2 earnings will be able to pump the stock back up.

Keep in mind that Cupertino’s June revenue quarter is estimated to come in at $43 billion, below consensus for $47.6 billion, and 4.75% lower compared to the year-ago period. For full FY 2016, analysts are expecting a 3% revenue decline. Based on these estimates, a move down for AAPL stock, at least on a short-term basis, seems more likely than a move up.

With its shares below $105, Apple’s market cap stands at just under $581 billion.

AAPL Stock

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