Is Apple Stock A Buy Right Now?

Apple stock is not a buy right now. It is trading well beyond the 5% chase zone of its last proper breakout. Also, it is trading above the 20%-to-25% profit-taking zone of that breakout, according to IBD trading guidelines. AAPL stock will need to form a new base in the right market conditions before setting a new potential buy point. Keep an eye on the overall stock market, which has been unsettled lately. If the market turns south, don’t try to fight the general stock market direction.

Apple saw its shares jump into record high territory after its June-quarter earnings report. The consumer electronics giant surged to a market capitalization of over $2 trillion. But with a recent dip in Apple stock, many investors are wondering if stock is a buy right now.

The biggest driver of Apple’s modern success is the iPhone. The game-changing smartphone, which debuted in 2007, sparked years of massive growth and created a loyal base of customers willing to buy Apple products and services.

But iPhone sales have slowed as users hold on to their handsets for longer periods between upgrades. However, the company could be on the brink of a major upgrade cycle with its first 5G iPhones, due out this fall.

On Sept. 15, the Cupertino, Calif.-based company is holding an online product launch event. According to news reports, Apple will unveil its latest smartwatches, the Apple Watch Series 6. The event could be the next catalyst for Apple stock, analysts say. The new lineup of smartwatches will include high-end and low-end models. New features for the top-of-the-line devices will include blood oxygen level detection and improved electrocardiograms, news reports say.

Apple is seen holding a second event in October to introduce its 5G-enabled iPhone 12 smartphones. Apple usually releases its latest iPhones in September, but the coronavirus pandemic delayed the launch. With iPhone growth slowing, investors are wondering what the next big growth driver will be for Apple stock.

Lately, two businesses have given Apple’s sales and profits a boost: services and wearables. In the June quarter, Apple’s services revenue rose 15% to $13.16 billion. Services include App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade and other offerings.

Meanwhile, Apple’s Wearables, Home and Accessories unit saw sales jump 17% to $6.45 billion in the June quarter. This unit includes wearables like the Apple Watch, AirPods wireless earbuds and Beats headphones. It also contains the Apple HomePod wireless speaker and other miscellaneous gadgets.

Is Apple Stock A Buy Ahead Of Fall Product Launch Event?, Investors.com, Sep 15