Time to Double-Dip Apple Shares

NEW YORK ( TheStreet) -- Wall Street analysts remain cautious on Apple ( AAPL) and have lowered price targets. For example, Goldman Sachs ( GS) recently picked Apple off its prestigious "Conviction Buy List" and lowered the stock's price target to $575 from $660. At ValuEngine, Apple has maintained its buy rating and remains one of the best value plays in the stock market today.

Wall Street prefers Google ( GOOG) and there are many articles on the Internet that try to justify a $1,000 price target for this stock. At ValuEngine we disagree, as Google remains hold rated with the stock extremely overvalued.

Meanwhile, Amazon ( AMZN) remains sell rated according to ValuEngine, but the stock remains above its 200-day simple moving average (SMA) at $248.69.

Apple remains the best Value Stock: Traders and buy-and-trade investors could have bought Apple at my annual value level at $421.05 on March 3/4 and the stock rebounded to $469.95 into March 25, providing a gain of more than 10%. This rebound approached my semiannual pivot at $470.21. Last Friday was an opportunity to double-dip at the $421.05 annual pivot.

Chart Courtesy of Thomson / Reuters

Apple still has a buy rating with fair value at $555.64, which makes the stock 23.2% undervalued in the computer & technology sector which is 9.0% overvalued. Apple has a 12 month trailing P/E of 10.11, and a 12 month forward P/E of 9.07. The weekly chart profile remains oversold and if the stock breaks below $419.00 the risk is to this week's value level at $406.75 with the 200-week simple moving average (SMA) at $371.43. For Apple to swing back to mojo status, the stock needs a weekly close above the five-week modified moving average (MMA) at $445.10.

Sustaining $800 has been a problem for Google: After setting a record high at $844.00 on March 6, Google briefly dipped below $800 on March 28 with a low that day at $793.30. On April 1 the stock dipped slightly lower, but by the close was back above $800. On April 2, the stock failed below its 21-day SMA at $817.51 and on April 5 was below its 50-day SMA at $797.21 and on Monday Google traded as low as $768.40. It appears that as soon as Wall Street raised targets, the stock made a u-turn and could not hold $800.

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