Apple Continues To Be Under Pressure (AAPL)

Shares of Apple

have been under pressure in the wake of the unveiling of the iPhone 4 on Monday. During the last five trading sessions, AAPL has lost 6.46%, including 0.89% today, and the shares are currently trading at $247.11. Going into the announcement of the iPhone 4, AAPL had been a strong relative outperformer. The sell off in AAPL should not come as a surprise, as the "buy the rumor, sell the news," trend is well established in this name. Very similar trading activity coincided with the release of the iPad. Volume today has been below normal levels, with around 17.48 million shares trading hands. The fundamental outlook for AAPL continues to look compelling and the valuation still seems reasonable. The stock is trading at a forward P/E of 15.88 and a PEG ratio of 1.16. Analysts anticipate that the company will report EPS of $13.40 in fiscal 2010. The median Wall Street price target on the stock is $320 and the high target is set at $350. The company continues to be a favorite bet of some of the world's largest hedge funds, but the current price action in the stock should not be completely ignored by investors.