If you take a close look at the "Magnificent Seven" mega caps, Apple (AAPL) stands out... But not in a good way.

What to Do With a Highflier Like Apple By Joe Austin, senior analyst, Chaikin Analytics If you take a close look at the "Magnificent Seven" mega caps, Apple (AAPL) stands out... But not in a good way. It has the slowest revenue growth of the group. But its forward price-to-earnings (P/E) ratio of about 30 times is close to most of the others. So if you're putting new money into Apple today – or if you own it – that's a steep price for slow growth. But Apple is still in that Magnificent Seven. And these stocks are "magnificent" because they dominate the market. So as long as that domination holds, that momentum isn't something you want to bet against. The Magnificent Seven constitute about a third of the market cap of the S&P 500 Index. And they're responsible for around 50% of the market's gain this year. So when money flows into the market, money flows into these stocks. But especially with Apple, we all worry that nothing lasts forever. And in the past 10 years alone, Apple has had three drawdowns of greater than 30%. So today, let's take a closer look... Recommended Links: Today, Marc Chaikin Is Closing the Doors Until midnight tonight, you can claim one FREE year of the "Stealth" Power Gauge and essentially six free months of Smart Money Trader. It's a brand-new product with an underlying system that could help you double your portfolio by spotting which stocks could soon be at the center of massive Wall Street buying sprees. Doors close on this offer at MIDNIGHT TONIGHT. Until then, click here for the full details. "You Only Get This Opportunity Once Every 20 or 30 Years" One of the most important (and least understood) charts in finance flipped from red to green. Two of America's most respected financial analysts just went "LIVE" to explain what is happening – in plain English – and what you should do immediately. Keep in mind that Apple was the first member of the Magnificent Seven to go public. It held its initial public offering ("IPO") in December 1980. It didn't make the top 100 of the Fortune 500 until 1990. And at the time, it was only No. 96 on the list. But today, Apple is a global behemoth. It boasts a colossal $3.4 trillion market cap. And we wouldn't have smartphones or tablets without it. Apple's greatest asset is its loyal customers. According to a survey by Bloomberg last year, 93% of Apple customers said they would buy another Apple smartphone. That compares with only 80% of Android users. But that same report also showed Apple's installed base of phones would only grow 2% per year going forward. That's compared with the previous three-year average of 5%. Apple's share of the smartphone market is also in decline. It lost its No. 1 spot to Samsung earlier this year. And in terms of new products, there's not much to get excited about... Like any tech company, Apple is jumping on the AI bandwagon as fast as it can. However, AI will be just another feature on its phones. That might sell more of these devices... but likely won't bring in much in revenues outside of that. The Apple bulls like to talk about the company's healthy cash balance. And they'll bring up the company's return of cash to shareholders through buybacks and dividends. In its most recent quarter, Apple had more than $150 billion in cash, cash equivalents, and long-term securities on its balance sheet. Against that, it had more than $85 billion in debt. During the quarter, the company bought back some $25 billion of its stock. But a lot of Apple's cash is in overseas subsidiaries. And it can't really use that cash unless it pays taxes on it first. Plus, if buying back stock is the best thing a tech company has to do with its cash, that's no great endorsement for growth going forward. So where does that leave us? I keep going back to Apple's P/E ratio at 30 times. It's just too high for a company that's not showing better growth. But that doesn't mean to rush out to sell all your shares if you own the stock. I'm still not betting against Apple – or the Magnificent Seven, either. A wise (and wealthy) investor I know once taught me his strategy for high-flying, richly valued stocks if your position is making you nervous... His idea was to look at your percentage gain. Sell a corresponding amount. And be happy. So for example, if you're up 30%, you could sell a third of the position... and enjoy your success. If you're up by 50%, you could sell half... and consider yourself lucky. If the gain is anything more than 50%, you could think about selling at least half of the position. And then you can channel your energy into finding something else to buy. His idea was rooted in two principles... The first is that stocks that are up the most usually fall the most. And he wanted to avoid speculation and momentum whenever he could. The second is that new ideas usually have the best potential in terms of return. So selling gives you fresh capital to put to work. For example, here at Chaikin Analytics, we fish for those new ideas with our one-of-a-kind Power Gauge tool. As regular readers know, it looks at more than 20 distinct factors – ranging from financials, to technicals, to expert analysis. And it distills all that information down into a single rating. These ratings range from "very bearish" to "very bullish." This helps us find stocks poised for big upside. And it helps us avoid stocks that look primed to fall. Right now, Apple has a "neutral+" rating in the Power Gauge. Put simply, our system doesn't see as much upside with the stock as it would with a stock with a "bullish" or "very bullish" rating. So as I said, Apple's high P/E ratio combined with its slow growth makes me wary of the stock at these levels. And if you're holding the stock and worried about giving up gains, you could consider trimming your position. Meanwhile, I'll be using the Power Gauge to help find that next big idea. Good investing, Joe Austin   Editor's note: If you haven't heard already, Chaikin Analytics founder Marc Chaikin is using the Power Gauge for what he calls a "rapid fire" moneymaking opportunity... Put simply, this strategy is a new way to find the potential buying sprees on 5,000 different stocks before they occur. And Marc says right now is the perfect environment to put it to work. Marc recently went on camera to share all the details. Get the full story here before it comes offline tonight at midnight. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +3.55% 9 17 4 S&P 500 +2.49% 149 277 67 Nasdaq +2.77% 34 57 9 Small Caps +5.79% 660 987 271 Bonds -2.74% Financial +6.14% 48 21 2 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have become Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +6.27% Financial +5.2% Discretionary +4.74% Industrials +4.46% Communication +2.75% Information Technology +1.63% Materials +0.35% Health Care -0.02% Staples -0.9% Utilities -1.92% Real Estate -3.0% *  *  *  * Industry Focus Health Care Services 7 41 12 Over the past 6 months, the Health Care Services subsector (XHS) has underperformed the S&P 500 by -5.23%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors and has moved up 3 slots over the past week. Indicative Stocks BKD Brookdale Senior Liv OMI Owens & Minor, Inc. NRC National Research Co *  *  *  * Top Movers Gainers DFS +20.22% SYF +18.81% TRMB +17.88% NUE +15.99% KEY +15.7% Losers SMCI -18.05% ENPH -16.82% IFF -11.63% FSLR -10.13% IRM -8.98% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close VST, TPR, EPAM, ROK AKAM, MSI, HOLX, FTNT, CPAY, BKNG, ANET MRNA, ZBH, WBD, TAP, RVTY, RL, PCG, AEE, KVUE, HII, EVRG, DUK, DHI, CEG, BDX, APD AXON, ED, EXPE, IFF, MNST, ABNB, NWSA, PODD, REG VTRS, TDG, HAL, HSY APA, LNT, MTD No earnings reporting today. Earnings Surprises TTWO Take-Two Interactive Software, Inc. Q2 $-0.23 Missed by $-0.24 CTVA Corteva, Inc. Q3 $-0.49 Missed by $-0.19 ANSS ANSYS, Inc. Q3 $2.58 Beat by $0.85 GILD Gilead Sciences, Inc. Q3 $2.01 Beat by $0.41 SUI Sun Communities, Inc. Q2 $0.94 Missed by $-0.32 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at edwardlorilla1986.paxforex@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.