GM Among The Top Trending Stocks With Unattractive Rating

All major stock indices declined for the second week in a row, largely led by declines from the tech-heavy Nasdaq NDAQ . Concerns loomed regarding over inflated valuations, doubts of a second stimulus package, and worries that the job market’s recovery is slowing down. This pullback, however, does not necessarily mean that the rally is over. This could be a sign that the hard part of the recovery is just beginning. While more volatility could be on the horizon, and traders will be consolidating gains, this bumpy road is simply par the course of trying to reach pre-pandemic levels of economic activity. Digging ourselves out from the bottoms in March was the easy part. Now is the hard part. The next phase of economic recovery depends on containing COVID, and how leadership handles the economic situation. Last week, the announcement that consumer prices rose in August signified that the economy and demand for goods was recovering. Only time will tell how stocks perform in the near future, though. The deep learning algorithms at Q.ai have used Artificial Intelligence (“AI”) technology and rated some Trending Stocks this week.

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Top Buy

Mastercard Inc (MA)

Our AI systems identified only one Top Buy this week- Mastercard MA . Our deep learning algorithms have identified factor scores of A in Technical, C in Growth, B in Momentum Volatility, and A in Quality Value. Mastercard has long been considered a blue chip stock, and has shown consistent growth over the last few years. The stock closed down 0.82% to $330.15 on volume of 2,920,397 vs. its 10-day price average of $345.33 and its 22-day price average of $340.92, and is up 9.27% for the year. Revenue was $16883.0M in the last fiscal year compared to $12497.0M three years ago, Operating Income was $9667.0M in the last fiscal year compared to $6809.0M three years ago, and EPS was $7.94 in the last fiscal year compared to $3.65 three years ago. ROE was a staggering 141.43% in the last year and considerably higher than its ROE of 69.59% three years ago. Forward 12M Revenue is expected to grow by 8.48% over the next 12 months, and the stock is trading with a Forward 12M P/E of 44.16.

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Attractive

There were 4 attractive rated stocks in the Trending Stocks this week, more details below.

Microsoft Corp (MSFT), Netflix Inc (NFLX)

For the second week in a row, our AI systems rated Microsoft MSFT and Netflix NFLX  as Attractive. The two mega tech names have had extremely strong years, with Microsoft gaining 28.03% for the year and Netflix gaining 46.15% for the year. Our AI systems have also identified factor scores C in Technical, C in Growth, A in Momentum Volatility, B in Quality Value for Microsoft, and factor scores of D in Technical, A in Growth, B in Momentum Volatility, C in Quality Value for Netflix. Microsoft closed down 0.65% to $204.03 on volume of 33,620,073 vs its 10-day price average of $216.83 and its 22-day price average of $214.98, and Netflix closed up 0.28% to $482.03 on volume of 5,035,200 vs its 10-day price average of $517.45 and its 22-day price average of $505.28. Microsoft’s financials are as follows: Revenue was $143015.0M in the last fiscal year vs. $110360.0M three years ago, Operating Income was $52959.0M in the last fiscal year vs. $35058.0M three years ago, and EPS was $5.76 in the last fiscal year vs. $2.13 three years ago. ROE was 40.14% in the last year- up from 19.45% three years ago. The stock is currently trading with a Forward 12M P/E of 31.64. Netflix’s financials are as follows: Revenue was $20156.45M in the last fiscal year vs. $11692.71M three years ago, Operating Income was $2604.25M in the last fiscal year vs. $838.68M three years ago, and EPS was $4.13 in the last fiscal year vs. $1.25 three years ago. ROE was 29.12% in the last year compared to 17.85% three years ago. Forward 12M Revenue is also expected to grow by 8.64% over the next 12 months, while the stock is trading with a Forward 12M P/E of 63.0.

Morgan Stanley (MS), Facebook Inc (FB)

Last week, our AI systems rated both Morgan Stanley MS  and Facebook FB as Neutral. This week however, our systems have rated these two stocks as Attractive. Our AI systems rated financial giant Morgan Stanley, a B in Technical, B in Growth, C in Momentum Volatility, D in Quality Value, and rated social media conglomerate Facebook a D in Technical, B in Growth, B in Momentum Volatility, B in Quality Value. While Morgan Stanley closed up 0.12% to $50.35 on volume of 8,968,528 vs its 10-day price average of $51.83 and its 22-day price average of $51.79, Facebook closed down 0.55% to $266.61 on volume of 18,913,883 vs its 10-day price average of $283.82 and its 22-day price average of $276.91. Morgan Stanley is down 1.08% for the year while Facebook is up 27.09% for the year.

Morgan Stanley’s financials are as follows: Revenue was $41419.0M in the last fiscal year compared to $37945.0M three years ago, Operating Income was $13842.0M in the last fiscal year compared to $12788.0M three years ago, and EPS was $5.19 in the last fiscal year compared to $3.07 three years ago. ROE was 11.26% in the last year while it was 8.01% three years ago. The stock is currently trading with a Forward 12M P/E of 10.87. For Facebook, their financials show considerable growth and look like so: Revenue was $70697.0M in the last fiscal year compared to $40653.0M three years ago, Operating Income was $23986.0M in the last fiscal year compared to $20203.0M three years ago, and EPS was $6.43 in the last fiscal year compared to $5.39 three years ago. ROE was slightly down from three years ago, as it was 19.96% in the last year compared to 23.86% three years ago. Forward 12M Revenue is expected to grow by 11.16% over the next 12 months, and the stock is trading with a Forward 12M P/E of 29.96.

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Neutral

There were three Neutral-rated stocks by our AI systems, more details below.

Intel Corp (INTC)

The first neutral stock this week is chipmaker Intel. Our AI systems scored Intel with ratings of D in Technical, C in Growth, C in Momentum Volatility, and C in Quality Value. The stock closed up 0.65% to $49.28 on volume of 29,333,570 vs its 10-day price average of $50.17 and its 22-day price average of $49.55. The stock is down 17.59% for the year. Revenue was $71965.0M in the last fiscal year compared to $62761.0M three years ago, Operating Income was $22428.0M in the last fiscal year compared to $18434.0M three years ago, and EPS was $4.71 in the last fiscal year compared to $1.99 three years ago. ROE was 27.68% in the last year compared to 14.2% three years ago, and the stock is trading with a Forward 12M P/E of 11.39.

MORE FROM FORBESIntel (INTC)

Starbucks Corp (SBUX)

The second neutral stock this week is coffee retail giant Starbucks SBUX . Our AI systems rated Starbucks with scores of B in Technical, D in Growth, C in Momentum Volatility, and C in Quality Value. The stock closed up 0.46% to $85.27 on volume of 7,103,251 vs its 10-day price average of $85.8 and its 22-day price average of $82.35. Starbucks is also down 3.08% for the year. Revenue was $26508.6M in the last fiscal year compared to $22386.8M three years ago. Operating Income was $3915.7M in the last fiscal year compared to $3896.8M three years ago, and EPS was $2.92 in the last fiscal year compared to $1.97 three years ago. Forward 12M Revenue is expected to grow by 13.84% over the next 12 months, and the stock is trading with a Forward 12M P/E of 38.11.

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Best Buy Co Inc (BBY)

The final neutral stock is consumer electronics retailer Best Buy BBY . Our AI systems have assigned Best Buy factor scores of C in Technical, C in Growth, C in Momentum Volatility, and C in Quality Value. The stock closed down 0.25% to $107.11 on volume of 1,353,834 vs its 10-day price average of $109.33 and its 22-day price average of $110.37. The stock is up 24.76% for the year. Revenue was $43638.0M in the last fiscal year compared to $42151.0M three years ago, Operating Income was $2053.0M in the last fiscal year compared to $1853.0M three years ago, and EPS was $5.75 in the last fiscal year compared to $3.26 three years ago. ROE was 45.42% in the last year compared to 24.01% three years ago, and Forward 12M Revenue is expected to grow by 1.48% over the next 12 months. The stock is also trading with a Forward 12M P/E of 15.2.

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Unattractive

Two stocks were identified as unattractive, and both are in the transportation/manufacturing space.

General Motors (GM)

Automobile manufacturer General Motors GM , despite the big news on their partnership with electric vehicle maker Nikola, is the first stock which has been identified as unattractive. Our AI systems rated GM a C in Technical, D in Growth, C in Momentum Volatility, and D in Quality Value. The stock closed up 0.96% to $30.46 on volume of 13,613,226 vs its 10-day price average of $30.48 and its 22-day price average of $29.72. The stock is down 18.51% for the year. Revenue was $137237.0M in the last fiscal year compared to $145588.0M three years ago, Operating Income was $6444.0M in the last fiscal year, compared to $10150.0M three years ago, and EPS was $4.57 in the last fiscal year, compared to $(2.6) three years ago. ROE was 15.03% in the last year compared to 0.82% three years ago. Forward 12M Revenue is expected to grow by 12.26% over the next 12 months.

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Boeing Co (BA)

The second stock rated unattractive is airplane manufacturer Boeing BA . Our AI systems gave Boeing ratings of C in Technical, D in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 1.61% to $160.23 on volume of 14,683,687 vs its 10-day price average of $167.41 and its 22-day price average of $170.46. The stock is down 51.64% for the year and reflects the damage that COVID-19 has done on airplane transportation. Revenue was $76559.0M in the last fiscal year compared to $94005.0M three years ago, Operating Income was $(2102.0)M in the last fiscal year compared to $10113.0M three years ago, and EPS was $(1.12) in the last fiscal year compared to $13.85 three years ago. Forward 12M Revenue, however, is expected to grow by 16.6% over the next 12 months.

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