How to analyse a stock: 5 steps using Apple
Check five things. Are earnings and revenue growing? What is the price trend? Is the stock beating the market? Is there a base on the chart and where is the buy point? When is the next report? If the answer is «no» on at least two, it is better to wait.
Look for earnings-per-share growth of 20–25% or more year over year and acceleration quarter to quarter. Revenue growth confirms the profit comes from the business, not cost cuts.
Price above the 50- and 200-day averages means an uptrend. Below both argues against buying: you would be buying what the market is selling.
Compare the stock's 12-month gain with the index. Market leaders rise faster, and their relative strength line slopes up.
After an advance, strong stocks rest for 5–15 weeks, forming a base. Buy on a breakout above its top, ideally on higher volume, and no more than 5% past it.
Entering 1–2 weeks before earnings is riskier: the price can gap either way, and a stop will not protect you from a gap.
- Apple: EPS +14%, revenue +12% last quarter
- Apple: +2.6% vs the 50-day average, +15.4% vs the 200-day
- Apple +27.8% over 12 months versus +8.8% for the S&P 500
- Apple: 3.2% below the high of Nov 5, 2026, pattern: cup without handle
- Apple reports on Feb 4, 2027
FAQ
Which matters more, fundamentals or the chart?
Fundamentals answer «what to buy», the chart answers «when». A strong company in a downtrend can fall for months.
How long does an analysis take?
With these five points, 5–10 minutes per stock.
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