The broad market S&P 500 Index, tech-heavy Nasdaq 100 Index, and small-cap Russell 2000 Index are all in "neutral" territory in the Power Gauge right now. And we're seeing that take its toll on some of the market's most powerful companies.
In fact, it's taking a toll on the largest U.S.-listed company by market cap – tech giant Apple (AAPL).
Apple currently earns a "neutral-" rating from the Power Gauge. And its stock is off about 6% from its recent high late last month.
So today, let's take a closer look. We'll use the Power Gauge to dive into Apple. And we'll examine some of the headwinds the company is facing today...
This new year, Dr. David "Doc" Eifrig is looking to teach at least 500 people how to make hundreds or even thousands of dollars in extra cash income from the stock market. This is his No. 1 favorite strategy – and he has used it to achieve a 95% win rate over the past 15 years, racking up streaks of 211, 108, and 136 winning trades in a row. It could be your best bet for navigating ANY market in 2025... But you'll need to act fast to be among the first 500 to join Doc's "challenge." Click here for the full details.
It goes over a new way to potentially double your portfolio in 2025 by predicting the biggest jumps on 5,000 stocks, BEFORE they occur... how a "disconnect" in today's market has opened the best opportunity in 20 years to apply this breakthrough new strategy today... and includes two free recommendations in a historic event backed by three Wall Street legends. Watch now, before it goes offline.
Let's start by looking at a chart of Apple. Take a look at the one below with some data from the Power Gauge...
As you can see, Apple has made some big gains...
The stock soared about 30% in 2024. But you'll also notice that it wasn't a straight line up.
In fact, Apple's stock lost ground from the start of the year through most of April. After that, it surged higher into mid-July... and then it traded mostly sideways for months until finally making another push higher toward the end of the year.
That made the stock particularly vexing for investors in 2024. And you'll see on the chart that the company earned a "neutral" rating from the Power Gauge for most of the year.
Now, something is different. And to me, it's all about earnings...
We can see that by looking into Apple's category ratings in the Power Gauge.
It's not the just the recent decline that's currently hurting Apple's rating. In fact, Apple earns a "very bullish" rating in the Technicals category.
But the Earnings and Financials categories look particularly weak right now. They both earn "very bearish" ratings from the Power Gauge.
On the Financials side, we find that Apple is trading at a price-to-sales (P/S) ratio of more than 9 times. And it's trading at a price-to-earnings (P/E) ratio of about 36 times.
Folks, that's "expensive" by any traditional measure. There's no getting around that.
But it's also worth remembering that expectations of growth can keep companies "expensive" for a long time. Put simply, investors are willing to pay a premium for companies that are growing.
Unfortunately for Apple, that growth is in question right now...
Today, the company is struggling on the growth side. Its augmented-reality Vision Pro headset was a flop. And more importantly, iPhone sales in China fell roughly 8% in 2024.
Apple is facing other headwinds, too. Consumers don't seem to be buying based on the promise of future AI features. And the current generation of AI features don't seem to be motivating consumers to make more purchases or make purchases earlier.
Worse still, Apple is facing an iPhone sales ban in Indonesia. The company recently offered a $1 billion manufacturing investment in the region. But the government rejected that offer.
Apple will likely resolve this problem. But for now, it's hurting earnings. And solving the problem is obviously going to come at a steep cost.
Putting it all together, it's no wonder the Power Gauge is still cautious on Apple today. The company is facing significant headwinds. And its earnings growth is in question.
Will Apple eventually turn things around? I expect it will...
But for now, I'll heed the Power Gauge's warning. I wouldn't rush to buy this dip.
Good investing,
Vic Lederman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.19%
10
11
9
S&P 500
+0.15%
68
252
176
Nasdaq
+0.02%
20
48
32
Small Caps
-0.45%
319
1098
483
Bonds
+0.13%
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+2.78%
Health Care
+2.08%
Industrials
+0.8%
Information Technology
+0.58%
Communication
+0.46%
Utilities
+0.42%
Financial
+0.29%
Materials
+0.02%
Discretionary
-0.6%
Real Estate
-1.28%
Staples
-1.56%
* * * *
Industry Focus
Health Care Equipment Services
13
35
14
Over the past 6 months, the Health Care Equipment subsector (XHE) has outperformed the S&P 500 by +3.91%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #7 of 21 subsectors and has moved up 6 slots over the past week.
Indicative Stocks
NEOG
Neogen Corporation
HAE
Haemonetics Corporat
IART
Integra LifeSciences
* * * *
Top Movers
Gainers
EBAY
+9.86%
BSX
+4.3%
KMX
+3.55%
MDT
+3.52%
GEHC
+3.47%
Losers
EIX
-10.18%
MRNA
-9.17%
ON
-7.05%
ENPH
-5.24%
SMCI
-5.15%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
SNX
WBA
No earnings reporting today.
Earnings Surprises
JEF Jefferies Financial Group Inc.
Q4
$0.95
Missed by $-0.09
MSM MSC Industrial Direct Co., Inc.
Q1
$0.86
Beat by $0.13
UNF UniFirst Corporation
Q1
$2.40
Beat by $0.19
* * * *
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.
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.
Post a Comment
0Comments