The stock market is an intriguing place where investors are always on the hunt for promising stocks that are poised to rise. Among the hundreds of available stocks, two stand out as consolidating, preparing to resume their respective uptrends. These two are Tesla Inc. (TSLA) and Apple Inc. (AAPL).
In the first case, Tesla Inc, an electric vehicle and clean energy company, has been consolidating for a few months now. Following the surge since 2020, the share price reached an all-time high of $900 in January 2021 but retraced due to market volatility and some issues related to production and global chip shortage. Despite these dynamics, Tesla has been showing signs of creating a base from which to launch its next uptrend.
The company’s financial fundamentals remain robust, with a stronger balance sheet and positive earnings. Tesla’s most recent Q2 2021 profit numbers were impressive, making it the eighth quarter in a row for the company’s profitability. It registered a net income of $1.1 billion on $12 billion in sales. As the global economy begins to recover from the effects of the pandemic, Tesla’s innovative strategy combined with the growing demand for electric vehicles puts it in an excellent position.
Moreover, Tesla’s tech-forward approach and constant expansion of its product range, such as the recent introduction of the ‘Cybertruck’, continue to keep the market’s interest alive. As the electric vehicle market is projected to grow at a CAGR of 22.6% between 2022-2028, Tesla’s share price is expected to follow the same growth trajectory.
Moving on to Apple Inc., it is another consolidating stock ready to resume its uptrend. Apple experienced a sharp increase in its stock prices during the pandemic because of the increased demand for personal computers, tablets, and software as millions of people transitioned to work from home. Despite being in a consolidating phase, thanks to a dip in the general tech sector, Apple’s fundamentals remain strong.
Apple’s Q2 2021 results showed a whopping 54% increase in revenue year-over-year, with a net income of $89.6 billion. Their services segment, which includes Apple Music, iCloud, and App Store, grew by 26.7% year-over-year, hitting a record high. This diversification and growth in their services segment demonstrates the resilience and stability of the company, offering more than just hardware.
Besides, the possibility of launching new products keeps the buzz surrounding Apple alive. Their recent introduction of features like the privacy-focused iOS 15, a new iPad Pro, and colored iMacs have generated quite a buzz in the industry, further solidifying the expectations of an uptrend.
In conclusion, while market fluctuations can lead to interim phases of consolidation, both Tesla and Apple display robust, future-focused strategies and strong financials that indicate forthcoming uptrends. Investors should keep an eye on these two stocks for potential rewarding outcomes.
Nevertheless, as always in the stock market, nothing is set in stone. While these two stocks exhibit all the signs of future growth, it’s essential to view these insights as part of a broader investment strategy that aligns with your risk tolerance and financial goals.
