NEW YORK ( TheStreet) -- When you compare Apple (AAPL - Get Report) and Google (GOOG) you must consider both fundamental and technical analysis. When Apple traded below $400 in April and in June, the stock became the cheapest value stock in the ValuEngine universe and had a buy rating. Google on the other hand has been overvalued all year so far.
The ploys of billionaire Carl Icahn fueled strength in Apple shares as the stock returned to the $500 threshold for the first time since Jan. 23. According to Thomson/First Call 18 analysts have a strong buy rating and 22 have a buy rating. There are 11 hold ratings, and one each has under-perform and sell ratings.
At ValuEngine Apple is rated hold and is overvalued by 13.3% with a one-year price target at $503.84, which has been tested this week. The key for the stock is now technical momentum. The stock is overbought on its daily chart and has a positive weekly chart profile after the stock held its 200-week simple moving average at $286.51 at the end of June. Apple has mojo status as long as weekly closes are above its five-week modified moving average at $461.89.
My proprietary analytics correctly projected that Apple would return to my annual pivot at $510.64 where buy-and-trade investors should book some profits. To gain additional mojo the stock must have a close today above $510.64 as such indicates upside to my semiannual risky level at $620.84.