Apple (AAPL) Stock Forecast: Apple's earnings likely to beat, shares aiming for all time highs

Update: Apple stock continues to push on as early trading continues with the stock sitting just below all-time highs. Results tomorrow are highly anticipated and if previous ones are anything to go by should be a blowout. However, this does not necessarily follow through to the stock pushing higher as can be seen from the previous two releases. AAPL is up 0.6% at $149.44.

Apple stock is poised to reach near all-time highs on Monday ahead of results to the end of June being released on Tuesday. The trend so far in 2021 is for most companies to smash results and make us wonder just how out of touch those Wall Street analysts really are. How can you consistently get it so wrong and still get paid so much?! 

Apple reports results tomorrow Tuesday, July 27. Earnings Per Share (EPS) is expected to come in at $1.01 with revenue forecast at $72.93 billion. The previous two earnings releases have not been kind to AAPL stock price with the last release in April seeing Apple shares fall from $137 to the low $120s despite results coming in over 40% ahead of those famed Wall Street analyst expectations. The prior release on January 27 2021 saw earnings come in 20% ahead of analyst forecast but, again, the Apple share price declined, moving from $145 to the low $120s again. 

Apple key statistics

Market Cap	$2.44 trillion
Enterprise Value	$2.1 trillion
Price/Earnings (P/E)	32
Price/Book	38
Price/Sales	9
Gross Margin	40%
Net Margin	23%
EBITDA	$100 billion
Average Wall Street rating and price target	Buy $159

Apple stock forecast

As mentioned above in our look back to the previous two earnings releases, which both saw a retracement to the low $120s, this is a strong support zone. The point of control (price with the highest volume) is at $123.46 and the volume profile shows a large amount of volume from $127 to $120. So, it is no surprise that this zone has seen any falls in the share price stop and a regrouping for a move higher. 

Action is likely to be limited on Monday as investors wait for the results on Tuesday before taking any major positions. Support at the $135-137 region is also strong again being a zone of high relative volume and also breaking $137 was the catalyst for this current rally to all-time highs. That is the first support zone with the second stronger one being the low $120s.

The Moving Average Convergence Adivergence (MACD) is crossing to a bearish signal so keep an eye on this. Relative Strength Index (RSI) and Commodity Channel Index (CCI) which are two overbought or oversold indicators are in neutral territory.

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