Apple Inc share price has increased over the last few trading sessions to make it back from below the $400 level breached in late June 2013.

The price of Apple Inc stocks rose on Monday after news of the company applying for a trademark of the iWatch in Japan came out. The iWatch trademark reminded investors that Apple will release a new revolutionary product at some point. This is something market watchers and investors should be excited about to boost their confidence in putting their money in Apple Inc again.

Apple Inc also received a welcome boost after the company is reported to be in negotiations with China Mobile. If successful, Apple's iPhone will be offered to 700 million subscribers of the massive Chinese mobile company.

Apple Inc retains its attractiveness in price to earnings ratio of 10 with no recorded debt and a 35.6 per cent profit margin. Dividends are expected to be at 2.9 per cent despite the stock trading at $385, on its 52nd-week low.

The growth rate of earnings per share in three years is a strong 63 per cent, while the quarterly growth rate is a disappointing -18 per cent. Apple Inc's revenues last quarter increased by 10 per cent. The three-year sales growth rate remains solid at 52 per cent.

Shift in momentum

Momentum for Apple stocks is starting to change. For investors, a risk reversal is recommended for a low-risk option trading strategy. With Apple's share price settling near the $418 level, the risk reversal strategy will likely have no cost to the investor.

A year ago, Apple Inc shares were virtually a must-have in every stock portfolio as market predictions of the share price were astronomical. The tech darling of Wall Street suddenly missed analysts' estimates in three of the last four quarters.

Apple Inc share prices went from a high of $705.07 in September 2012 to $385.10 in recent trading sessions. Analysts project Apple's earnings to grow at an average of 15 per cent for the next five years.

Reports of the impending release of the iWatch due to trademark applications in Japan and other countries could signal a strong recovery for Apple Inc in the stock market. Since investors would like to see more revolutionary products from Apple, they may not wait that long if rumours are true about the new iPhone and iWatch coming soon.

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