Apple Inc. (NASDAQ:AAPL) Initiated with a Sell at Stock Traders Daily

Based on a combination of factors, none more important than valuation, Stock Traders Daily has initiated coverage of Apple Inc. (NASDAQ:AAPL) with a sell rating.

EPS Growth for AAPL in 2016 is expected to be dismal, barely above 2%, and we believe that much lower growth rates will be the norm for AAPL going forward.  The 11x PE Multiple does not look rich to the naked eye, until it is compared to EPS growth.

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AAPL currently trades at about 5x its EPS Growth rate, making it look expensive.  With a PEG Ratio over 5, we believe that AAPL is susceptible to material decline as the year continues. 

Given the macroeconomic concerns stemming from the Investment Rate, material market risks already exist, and as they manifest investors will shy away from rich-looking companies, of which AAPL is one.

Technical Summary

Term →Near Mid Long
Bias Strong Strong Neutral
P1 103.26 88.17 84.64
P2 105.28 97.69 97.91
P3 107.08 106.55 109.90

Long Term Trading Plans for AAPL

March 17, 2016, 4:31 pm ET

The technical Summary and associated Trading Plans for AAPL listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for AAPL. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

AAPL - (Long) Support Plan

Buy over 97.91 target 109.90 stop loss @ 97.65.
The technical summary data tells us to buy AAPL near 97.91 with an upside target of 109.90. This data also tells us to set a stop loss @ 97.65 to protect against excessive loss in case the stock begins to move against the trade. 97.91 is the first level of support below 105.80 , and by rule, any test of support is a buy signal. In this case, support 97.91 is being tested, a buy signal would exist.

AAPL - (Short) Resistance Plan

Short under 109.90 target 97.91 stop loss @ 110.16
The technical summary data is suggesting a short of AAPL as it gets near 109.90 with a downside target of 97.91. We should have a stop loss in place at 110.16 though. 109.90 is the first level of resistance above 105.80, and by rule, any test of resistance is a short signal. In this case, if resistance 109.90 is being tested, a short signal would exist.

AAPL Long Term Analysis

AAPL EPS Analysis

AAPL Dividend Chart

AAPL Revenue chart

AAPL Growth rate - Quarterly

AAPL Growth rate - Yearly

AAPL PE chart

AAPL PEG chart