EARN25

Are Analysts Gravitating Toward Fitbit Inc and Away from Apple Inc.?

Analyst sentiment toward Apple Inc. (NASDAQ:AAPL) is back near 2009 levels, while the Street is fully behind Fitbit Inc (NYSE:FIT)

Jul 8, 2015 at 12:22 PM
facebook X logo linkedin


Reports are circulating that sales of the Apple Watch have fallen off precipitously, with MarketWatch citing research firm Slice Intelligence, which puts the decline at 90%. They're not the only ones suggesting a drop in demand for Apple Inc.'s (NASDAQ:AAPL) smartwatch. In a recent interview with Barron's, Paul Hickey and Justin Walters of Bespoke Investment Group said they've seen sentiment toward the Apple Watch continue to decline since September.


Taking a look elsewhere on the Street, the majority of analysts still maintain a "buy" or better opinion on AAPL -- 22 out of 34, to be exact. However, even though the bias toward the stock appears bullish, analysts have been growing less and less fond of the shares for some time now. Just take a look at the chart below, courtesy of Schaeffer's Quantitative Analyst Chris Prybal.

AAAAPL

Clearly, many traders have moved their "buy" ratings down to "holds." In fact, current sentiment toward AAPL roughly resembles the outlook from 2009 "crisis" levels. It's also interesting to note that a brokerage firm hasn't issued a "sell" rating on the equity since around that same time.

Interestingly, this comes at a time when Apple Inc. (NASDAQ:AAPL) is seeing fresh smartwatch competition on the Street, thanks to newcomer Fitbit Inc (NYSE:FIT). It just so happens FIT has so far appealed to analysts; all the brokerage firms covering FIT say it's a "buy." Furthermore, just yesterday Baird stated Fitbit polled better than its competitors in its May fitness band survey. At last check, AAPL was off 1.8% at $123.46, while FIT had gained 0.4% at $42.31. 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!