At www.ValuEngine.com we show that 45.3% of all stocks are undervalued with 54.7% overvalued. We show that 15 of 16 sectors are overvalued with the oils-energy sector the cheapest at just 0.15% undervalued. Sectors overvalued by double-digit percentages rose to nine; construction by 24.5%, consumer staples by 19.3%, industrial products by 17.7%, finance by 15.2%, retail-wholesale by 15.0%, transportation by 14.7%, business services by 13.7%, computer & technology by 12.9% and aerospace by 12.8%.
Compared to the market and the computer and technology sector Apple is fundamentally cheap. Apple has a buy rating according to ValuEngine with fair value at $606.94 making the stock 9.5% undervalued. Apple has a favorable price-to-earnings ratio at 12.5. The one-year price target is $581.80. Fundamentally, Apple begins 2013 as a buy-and-trade candidate.
My proprietary analytics show that Apple has an annual value level at $510.64 suggesting that even if the stock falls below $500 in 2013 it will come back to $510.64 as a pivot, or magnet.
Semiannual and annual value levels are $470.21 and $421.05 with a monthly risky level at $604.86, a semiannual risky level at $651.60 and a quarterly risky level at $652.00. Odds are that Apple will stay below $700 for at least the first half of the year.The monthly chart for Apple ended 2012 with a negative profile closing below its five-month modified moving average, now at $569.78. Note that momentum (12x3x3 monthly slow stochastic) reading is declining below 80.00 after being overbought since the end of 2009. This keeps Apple a sell strength stock as 2013 begins, as a new all-time high is unlikely.
Chart Courtesy of Thomson/Reuters The weekly chart for Apple is negative but oversold with oversold momentum (12x3x3 weekly slow stochastic) reading below 20.00. A close this week above the five-week modified moving average at $546.35 shifts the weekly chart profile to neutral. If momentum is rising above 20.00 the chart would be positive.
Chart Courtesy of Thomson/Reuters
Chart Courtesy of Thomson/Reuters The daily chart profile for Apple is positive with a momentum (12x3x3 daily slow stochastic) reading rising above 20.00. The stock is above its 21-day simple moving average at $532.86 but below its 50-day and 200-day simple moving averages at $559.14 and $599.86.
At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.