NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) traded below $500 per share Monday on reports of cuts in orders for LCD screens on weaker than expected demand for the iPhone 5. Amazon.com (AMZN - Get Report) traded to an all-time high at $274.26 on continued Wall Street upgrades. Google (GOOG) traded lower Monday alleviating an overbought condition on its daily chart and is trading between its all-time high at $774.38 set on Oct. 5 and its Nov. 16 low at $636.00.
On Jan. 3, I wrote
At Apple's all-time high of $705.07 on Sept. 21 the stock tested the ValuEngine one-year price target at that time. Today the one-year price target is $533.46, which is a projected gain of 6.3% setting the buy rating.
Even after Monday's price break Apple is still up 20.6% over the last 12 months and now has a 12 month forward price-to-earnings ratio of just 9.6. Apple reports its Q4 quarterly results on Jan. 23 and Wall Street analysts project that the company will earn $13.43 per share. It will be important to track whether or not this EPS estimate is lowered over the next week. Despite a price decline from above $700 to below $500 most analysts stubbornly keep their lofty ratings and price targets with a median price target of $745 and 21 strong buy and 28 buy ratings, six hold ratings, and only two underperform and one sell rating. The daily chart for Apple ($501.75) is negative and the weekly chart shows oversold Mojo with the stock below its five-week modified moving average at $530.44. My semiannual and annual value levels are $470.21 and $421.05 with my annual pivot at $510.64 with weekly, monthly, and semiannual risky levels at $538.18, $604.86 and $651.60. Amazon remains "three-engine" hold rated according to ValuEngine with fair value at $208.84, which makes the stock 30.6% overvalued in the retail-wholesale sector, which is 11.6% overvalued.
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