Apple is reportedly getting ready to start production on a smartwatch this July. The watch is said to have nearly a dozen sensors, including ones that could monitor the wearers’ health data. But, is it smart to get in on the stock, which is up 22 percent in the last two months?
“I think this could be very important for Apple’s stock,” said Gina Sanchez, founder of Chantico Global. “Apple’s stock has been trading cheap for some time. And, it’s been almost four years since Apple has had a new product release.”
Sanchez, a CNBC contributor, notes that research firm IDC predicts wearable technology devices could hit 112 million units sold in 2018. Apple is trying to get first-mover advantage, according to Sanchez, but the large market may be attracting other major competitors.
“They’re not the only one’s trying to do this,” Sanchez said. “Microsoft is after this market. We’re seeing a lot of potential growth here. So, I think that a lot of eyes are on this watch.”
Meanwhile, Katie Stockton, chief technical strategist at BTIG, is bullish on Apple’s stock. “Apple’s chart is really a momentum story all over again,” Stocktonsaid. “We have positive momentum really across all time horizons. And, that’s a good thing, of course, from a technical standpoint.”
(Watch: Apple iWatch expectations)
Stockton is focused on the $100 per share level, which is roughly its split-adjusted all-time high. “There’s room for a test of that level into this fall,” Stockton said. “In the near term, while people maybe are waiting for the new product launch, you can see it consolidating, maybe trading sideways, [and] pulling back slightly with some support around $90.”
A small move down is possible because Apple’s stock is “somewhat overbought and showing some signs of exhaustion,” Stockton said, adding, “But, of course, remember that we’re on a very strong tape for the broader markets so that should help keep a floor under Apple.”
To see the full discussion on Apple, with Sanchez on the fundamentals and Stockton on the technicals, watch the above video.