Apple (NASDAQ:AAPL) stock has climbed 51% in 2019 as of mid-afternoon trading on October 21. Shares have jumped 15% over the past three months. The technology giant is set to release its fiscal 2019 fourth-quarter and full-year results on October 30. Should investors continue to pour into this stock ahead of the next report?
With the introduction of the iPhone 11, 11 Pro, and 11 Pro Max in September, Apple surprised consumers by lowering its starting price tag relative to the starting price of last year’s iPhone XR. Analysts have raised Apple forecasts after the iPhone 11 has demonstrated some impressive early sales numbers. Apple also reduced the price of its iPhone XR, which has bumped up sales.
Sales at Apple rose 1% in the third quarter, which was a good sign after three quarters of sales declines for the iPhone and in Greater China. Apple reported its biggest June ever in Q3 2019. This was driven by record revenue in Services. Its Wearables, iPad, and Mac all showed solid sales improvement in the quarter.
Apple stock currently possesses a solid price-to-earnings ratio of 20.4 but a high price-to-book value of 11.2. The stock last had an RSI of 72, putting Apple in technically overbought territory. Shares are trading at a 52-week high and look pricey before the Q4 earnings release.
I love Apple as a long-term play but I’m waiting for better value before pulling the trigger.
