Chaikin Stock Report for Apple Inc. $AAPL 12-28-11
The Chaikin Power Gauge RatingTM for Apple Inc. $AAPL on December 28, 2011 is bullish due to very strong earnings performance and very positive expert opinions. The rating in this stock report also reflects poor financial metrics and bearish price/volume activity. AAPL's earnings performance is very strong as a result of high earnings growth over the past 3-5 years and an upward trend in earnings this year.
Financial Metrics Rating - Bearish
AAPL's financial metrics are poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a low long term debt to equity ratio, high price to book value ratio, high return on equity, high price to sales ratio and relatively high cash flow.
Earnings Performance Rating - Very Bullish
AAPL's earnings performance has been very strong. The company has a history of strong earnings growth and experienced superior earnings growth in the past 12 months. The rank is based on high earnings growth over the past 3-5 years, an upward trend in earnings this year and consistent earnings over the past 5 years.
Price/Volume Activity Rating - Bearish
Price and volume activity for AAPL is bearish. AAPL is trading on lower volume than its 90 day average volume and is experiencing sustained selling. The rank for AAPL is based on its price strength versus the market and a decreasing volume trend.
Expert Opinions - Very Bullish
Expert opinions about AAPL are very positive. Analysts are raising their EPS estimates for AAPL and shorting of AAPL is low. The rank for AAPL is based on analysts revising earnings estimates upward, a low short interest ratio, insiders not purchasing significant amounts of stock and optimistic analyst opinions.