Netflix And Microsoft Remain Top Stocks To Buy This Week

November witnessed strong gains due to election relief and vaccine-related euphoria and the first week of December largely kept this rally moving. Last week, the Dow Jones gained 1.0%, the S&P 500 gained 1.7%, and the NASDAQ gained 2.1%. The Russell 2000 also once again continued its scorching hot run, and led the markets with a gain of nearly 4%. For the first time since the start of the pandemic, there is seemingly light at the end of the tunnel. However, last week, the news was not all good- on several fronts. The November jobs report was very underwhelming as the U.S. added only 245,000 jobs and significantly missed estimates of 440,000 amid record spikes in COVID-19 infections and renewed shutdowns and restrictions. Additionally, Pfizer revealed last Thursday that it may have issues rolling its vaccine out due to supply chain concerns. Although investors did not seem overly concerned, COVID-19 continues surging to record new daily cases, record hospitalizations, and record daily deaths. With shutdowns becoming more commonplace and stricter, the near-term economic conditions are certainly concerning. Despite vaccine hopes, the economic rebound very well could stall in the coming months before regaining momentum- especially without an economic stimulus. Although some believe a stimulus package could pass this week, despite some signs of the ice thawing between Democrats and Republicans, Senate Majority Leader Mitch McConnell last week still rejected a $980 billion aid package and countered with an offer barely half of that. Be very cautious this week- because markets, and society for that matter, are truly on the edge. Among all the news and data spurring on the markets, the deep learning algorithms at Q.ai have used Artificial Intelligence (“AI”) technology to rate the Top Trending Stocks for this week.

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Top Buy

Two of our trending stocks were identified as Top Buys this week.

Microsoft Corp (MSFT)

Microsoft is our first Top Buy for a third straight week. Long a staple in the tech industry, the company is one the largest providers of computer software, consumer electronics, personal computers, and related services in the world. The tech giant has been reborn and continues to innovate, grow, and adapt to any changes in the market. As we are firmly in the holiday shopping season, Microsoft could also have a very big week. Our AI systems rated Microsoft B in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 0.06% to $214.36 on volume of 24,666,039 vs its 10-day price average of $213.77 and its 22-day price average of $214.93, and is up 34.87% for the year. Revenue grew by 2.87% in the last fiscal year and grew by 33.3% over the last three fiscal years, Operating Income grew by 6.02% in the last fiscal year and grew by 60.16% over the last three fiscal years, and EPS grew by 7.62% in the last fiscal year and grew by 191.03% over the last three fiscal years. Revenue was $143015.0M in the last fiscal year compared to $110360.0M three years ago, Operating Income was $52959.0M in the last fiscal year compared to $35058.0M three years ago, EPS was $5.76 in the last fiscal year compared to $2.13 three years ago, and ROE was 40.14% in the last year compared to 19.45% three years ago. Forward 12M Revenue is expected to grow by 2.53% over the next 12 months, and the stock is trading with a Forward 12M P/E of 31.79.

Netflix (NFLX)

Netflix is our final Top Buy for the week for the third week in a row. The streaming media giant, although experiencing ups and downs with other “stay-at-home” stocks due to positive vaccine data, was slightly up last week, has been a major winner in 2020, and continues to have a bright future. Our AI systems have rated Netflix B in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed up 0.16% to $498.31 on volume of 3,666,243 vs its 10-day price average of $491.86 and its 22-day price average of $490.06, and is up 51.09% for the year. Revenue grew by 18.17% in the last fiscal year and grew by 103.71% over the last three fiscal years, Operating Income grew by 57.03% in the last fiscal year and grew by 387.62% over the last three fiscal years, and EPS grew by 49.92% in the last fiscal year and grew by 395.33% over the last three fiscal years. Revenue was $20156.45M in the last fiscal year compared to $11692.71M three years ago, Operating Income was $2604.25M in the last fiscal year compared to $838.68M three years ago, EPS was $4.13 in the last fiscal year compared to $1.25 three years ago, and ROE was 29.12% in the last year compared to 17.85% three years ago. Forward 12M Revenue is expected to grow by 14.01% over the next 12 months, and the stock is trading with a Forward 12M P/E of 57.47.

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Attractive

Two of our trending stocks were identified as Attractive this week.

Verizon Communications Inc (VZ)

Verizon Communications is our first Attractive stock for this week, and has been rated Attractive for the last month or so. Verizon is one of the largest telecom companies in the US, and after AT&T, is the second largest telecom company in terms of revenue. Verizon has been in the news a lot lately due to its 5G expansion and attractive holiday deals. Our AI systems rated Verizon D in Technicals, C in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.31% to $61.55 on volume of 10,494,999 vs its 10-day price average of $60.75 and its 22-day price average of $60.34, and is up 5.25% for the year. Revenue grew by 1.86% over the last three fiscal years, while Operating Income grew by 7.77% over the last three fiscal years. Revenue was $131868.0M in the last fiscal year compared to $126034.0M three years ago, Operating Income was $31521.0M in the last fiscal year compared to $28673.0M three years ago, EPS was $4.65 in the last fiscal year compared to $7.36 three years ago, and ROE was 33.67% in the last year compared to 88.91% three years ago. Forward 12M Revenue is expected to grow by 3.31% over the next 12 months, and the stock is trading with a Forward 12M P/E of 12.42.

Salesforce.Com Inc (CRM)

Salesforce is our next Attractive stock. Salesforce is a cloud computing company that provides customer relationship management services for businesses. It also sells a complementary suite of enterprise management applications focused on customer service, marketing automation, analytics, and application development. Although Salesforce’s stock price has lagged as of late due to news of its acquisition of Slack, in the long term, sky’s the limit for Salesforce’s upside. Some even believe this acquisition of Slack could make the company double in value. Our AI systems rated Salesforce C in Technicals, B in Growth, D in Low Volatility Momentum, and B in Quality Value. The stock closed up 2.21% to $225.86 on volume of 20,561,711 vs its 10-day price average of $242.57 and its 22-day price average of $249.31, and is up 35.25% for the year. Revenue grew by 18.65% in the last fiscal year and grew by 92.47% over the last three fiscal years, while EPS grew by 2472.25% in the last fiscal year and grew by 687.42% over the last three fiscal years. Revenue was $17098.0M in the last fiscal year compared to $10540.0M three years ago, Operating Income was $503.0M in the last fiscal year compared to $454.0M three years ago, EPS was $0.15 in the last fiscal year compared to $0.49 three years ago, and ROE was 0.51% in the last year compared to 4.03% three years ago. Forward 12M Revenue is expected to grow by 13.95% over the next 12 months, and the stock is trading with a Forward 12M P/E of 67.75.

Neutral Rated

Our systems have identified three Neutral rated trending stocks this week. 

Intel Corp (INTC)

Intel is our first Neutral rated stock for the second week in a row. Although a staple in tech and chipmaking, semiconductor competitors such as Nvidia and Advanced Micro Devices have skyrocketed this year, while Intel lagged. However, it has somewhat recovered with the rally in value and cyclical stocks. Our AI systems rated Intel C in Technicals, D in Growth, C in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.96% to $51.99 on volume of 39,767,719 vs its 10-day price average of $48.37 and its 22-day price average of $46.84, and is down 12.43% for the year. Revenue grew by 8.52% in the last fiscal year and grew by 24.44% over the last three fiscal years, Operating Income grew by 10.76% in the last fiscal year and grew by 34.76% over the last three fiscal years, and EPS grew by 8.48% in the last fiscal year and grew by 156.76% over the last three fiscal years. 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, EPS was $4.71 in the last fiscal year compared to $1.99 three years ago, and ROE was 27.68% in the last year compared to 14.2% three years ago. The stock is also trading with a Forward 12M P/E of 11.83.

Nike Inc (NKE)

Apparel giant Nike is our next Neutral rated trending stock for this week. Nike has performed admirably this year despite the pandemic, and remains the world’s largest supplier of athletic shoes and apparel. Additionally, as of fiscal year ending May 31, 2020, Nike alone was valued in excess of $32 billion- good to make it the most valuable brand among sports businesses. With holiday shopping in full swing, and the release of its new Air Force One sneaker, revenue could potentially boom in December. Our AI systems rated Nike C in Technicals, C in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.37% to $137.19 on volume of 4,342,866 vs its 10-day price average of $134.9 and its 22-day price average of $131.68, and is up 35.51% for the year. Revenue grew by 2.58% over the last three fiscal years, while Operating Income grew by 11.65% in the last fiscal year, and EPS grew by 5.56% in the last fiscal year and grew by 44.35% over the last three fiscal years. Revenue was $37403.0M in the last fiscal year compared to $36397.0M three years ago, Operating Income was $3115.0M in the last fiscal year compared to $4445.0M three years ago, EPS was $1.6 in the last fiscal year compared to $1.17 three years ago, and ROE was 29.7% in the last year compared to 17.4% three years ago. Forward 12M Revenue is expected to grow by 3.28% over the next 12 months, and the stock is trading with a Forward 12M P/E of 45.02.

Pfizer Inc (PFE)

Unless you have been living under a rock for the last month, you know that our final Neutral stock single handedly spurred a major market rally and flickered on a light at the end of the pandemic tunnel- Pfizer. Pfizer, one of the world’s largest pharmaceutical companies, has a leading COVID-19 vaccine candidate that was shown to be 95% effective during clinical trials. The UK became the first country in the world last week to approve usage of the vaccine, and was followed by Bahrain shortly after. Despite this optimism of the vaccine’s efficacy, there are some supply chain and distribution concerns affecting the vaccine’s roll out. Time will tell what happens in 2021. Our AI systems rated Pfizer D in Technicals, D in Growth, A in Momentum Volatility, and C in Quality Value. The stock closed up 0.62% to $40.34 on volume of 35,266,586 vs its 10-day price average of $38.25 and its 22-day price average of $36.96, and is up 13.19% for the year. Revenue was $51750.0M in the last fiscal year compared to $52546.0M three years ago, Operating Income was $15042.0M in the last fiscal year compared to $14711.0M three years ago, EPS was $2.87 in the last fiscal year compared to $3.52 three years ago, and ROE was 25.62% in the last year compared to 32.48% three years ago. Forward 12M Revenue is expected to grow by 17.76% over the next 12 months, and the stock is trading with a Forward 12M P/E of 13.01.

Unattractive

One of our Top Trending Stocks was identified as Unattractive this week.

Boeing Co (BA)

Boeing is our first Unattractive stock for the third week in a row. Despite being one of the best performing stocks in the entire market since the start of November due to vaccine-related euphoria, the pandemic is still not under control. Until that happens, Boeing’s business will simply not return to normal pre-pandemic levels. Our AI systems rated Boeing C in Technicals, C in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed down 1.89% to $232.71 on volume of 29,332,468 vs its 10-day price average of $218.12 and its 22-day price average of $199.23, and is down 29.76% for the year. 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, EPS was $(1.12) in the last fiscal year compared to $13.85 three years ago, and ROE was 653.13% three years ago. Forward 12M Revenue is also expected to grow by 23.26% over the next 12 months.

Top Short

One of our Top Trending Stocks was identified as a Top Short this week.

American Airlines Group Inc (AAL)

American Airlines Group Inc is our sole Top Short this week. American Airlines is the world’s largest airline in terms of fleet size, scheduled passengers carried, and revenue per passenger mile, and is a founding member of the Oneworld alliance – the third-largest airline alliance in the world. Despite COVID-vaccine news doing wonders for the stock price, business will simply not return to normal until the pandemic is brought under control, and international lockdown measures are lifted. Out AI systems rated American Airlines F in Technicals, F in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed up 1.93% to $16.4 on volume of 117,387,572 vs its 10-day price average of $14.66 and its 22-day price average of $13.33, and is down 43.43% for the year. Revenue was $45768.0M in the last fiscal year compared to $42622.0M three years ago, Operating Income was $3889.0M in the last fiscal year compared to $5103.0M three years ago, EPS was $3.79 in the last fiscal year compared to $2.61 three years ago, and ROE was 85.32% three years ago. Forward 12M Revenue is also expected to grow by 37.97% over the next 12 months.

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