Top Stocks To Buy Today As Markets Cool Off After Early December Gains

After the S&P 500 and Nasdaq NDAQ closed at record highs yesterday, markets cooled off today. This morning, the Dow Jones declined 175 points, or 0.6%, while the S&P 500 fell 0.3%, and the Nasdaq dropped 0.9%. Senate Majority Leader Mitch McConnell’s rejection of a bipartisan $908 billion stimulus proposal weighed on the sentiment today, after news of the proposal itself largely spurred yesterday’s gains. President-elect Joe Biden’s statement that he would not immediately remove tariffs targeting China weighed on the markets as well. Despite positive vaccine data, most recently with Pfizer PFE and BioNTech’s vaccine candidate getting greenlit in the UK, Federal Reserve Chairman Jerome Powell calling the economic outlook “extraordinarily uncertain” yesterday also hurt sentiment. For investors looking to make the most of this market, the deep learning algorithms at Q.ai have crunched the data to give you a set of Top Buys. Our Artificial Intelligence (“AI”) systems assessed each firm on parameters of Technicals, Growth, Low Volatility Momentum, and Quality Value to find the best long plays.

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D.R. Horton Inc (DHI)

D.R. Horton is our first Top Buy for today, and is our first of two large homebuilding stocks on the list. D.R. Horton has been the largest homebuilder by volume in the United States since 2002, and is considered one of the largest corporations in the U.S. in terms of revenue. Our AI systems rated the homebuilding giant B in Technicals, A in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed down 3.23% to $72.09 on volume of 2,872,325 vs its 10-day price average of $74.83 and its 22-day price average of $72.71, and is up 38.37% for the year. Revenue was $20311.1M in the last fiscal year compared to $16068.0M three years ago, Operating Income was $2938.9M in the last fiscal year compared to $2058.6M three years ago, EPS was $6.41 in the last fiscal year compared to $3.81 three years ago, and ROE was 21.24% in the last year compared to 17.3% three years ago. The stock is also trading with a Forward 12M P/E of 9.1.

MORE FROM FORBESD.R. Horton (DHI)

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Lennar Corp (LEN)

Lennar LEN is our other homebuilding stock on today’s list of Top Buys. While D H Horton is the largest homebuilder in the country in terms of revenue, since 2017, Lennar is the largest homebuilder in terms of revenue after acquiring CalAtlantic Homes. Lennar operates in 21 states, and also owns Rialto Capital Management. Our AI systems rated Lennar C in Technicals, C in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 3.47% to $73.23 on volume of 3,370,607 vs its 10-day price average of $76.28 and its 22-day price average of $75.5, and is up 32.14% for the year. Revenue grew by 1.68% in the last fiscal year and grew by 78.98% over the last three fiscal years, Operating Income grew by 16.86% in the last fiscal year and grew by 115.17% over the last three fiscal years, and EPS grew by 24.74% in the last fiscal year and grew by 111.94% over the last three fiscal years. Revenue was $22259.56M in the last fiscal year compared to $12646.36M three years ago, Operating Income was $2487.39M in the last fiscal year compared to $1350.87M three years ago, EPS was $5.74 in the last fiscal year compared to $3.38 three years ago, and ROE was 11.99% in the last year compared to 10.16% three years ago. Forward 12M Revenue is expected to grow by 9.13% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.2.

MORE FROM FORBESLennar (LEN)

Lowe’s Inc (LOW)

Lowe’s is our next Top Buy of the day. Lowe’s is one of the largest home improvement retailers in the U.S., and is second in size to only Home Depot HD . Our AI systems have rated Lowe’s C in Technicals, B in Growth, A in Low Volatility Momentum, B in Quality Value. The stock closed down 1.55% to $153.4 on volume of 6,102,585 vs its 10-day price average of $153.35 and its 22-day price average of $157.67, and is up 26.9% for the year. Revenue grew by 18.25% in the last fiscal year and grew by 24.33% over the last three fiscal years, Operating Income grew by 41.25% in the last fiscal year and grew by 41.1% over the last three fiscal years, and EPS grew by 28.76% in the last fiscal year and grew by 72.84% over the last three fiscal years. Revenue was $72148.0M in the last fiscal year compared to $68619.0M three years ago, Operating Income was $6579.0M in the last fiscal year compared to $6586.0M three years ago, EPS was $5.49 in the last fiscal year compared to $4.09 three years ago, and ROE was 152.46% in the last year compared to 56.02% three years ago. The stock is also trading with a Forward 12M P/E of 18.15.

MORE FROM FORBESLowe’s (LOW)

Paypal Holdings Inc (PYPL)

Paypal PYPL is our fourth Top Buy. Paypal has revolutionized finance and continues to be a FinTech innovator as a worldwide online payments system. Paypal has built itself into a platform that supports online money transfers from anywhere in the world, and also operates as a payment processor for online vendors, auction sites, and many other commercial users. Our AI systems rated Paypal B in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.13% to $216.54 on volume of 10,103,481 vs its 10-day price average of $202.93 and its 22-day price average of $196.12, and is up 95.52% for the year. Revenue grew by 14.22% in the last fiscal year and grew by 55.03% over the last three fiscal years, Operating Income grew by 15.16% in the last fiscal year and grew by 46.24% over the last three fiscal years, and EPS grew by 28.0% in the last fiscal year and grew by 80.25% over the last three fiscal years. Revenue was $17772.0M in the last fiscal year compared to $13094.0M three years ago, Operating Income was $2790.0M in the last fiscal year compared to $2197.0M three years ago, EPS was $2.07 in the last fiscal year compared to $1.47 three years ago, and ROE was 15.22% in the last year compared to 11.69% three years ago. Forward 12M Revenue is expected to grow by 13.7% over the next 12 months, and the stock is trading with a Forward 12M P/E of 51.18.

MORE FROM FORBESPayPal (PYPL)

Echostar Corp (SATS)

Our final Top Buy for the second day in a row is Echostar Corp SATS . Echostar, which is best known for operating DISH, is a leading provider of satellite communication and internet services. Our AI systems rated the company A in Technicals, C in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 2.31% to $23.22 on volume of 734,958 vs its 10-day price average of $24.53 and its 22-day price average of $24.66, and is down 46.26% for the year. Revenue grew by 0.61% in the last fiscal year, and grew by 24.42% over the last three fiscal years.Revenue grew by 0.61% in the last fiscal year and grew by 24.42% over the last three fiscal years, while Operating Income grew by 75.28% over the last three fiscal years. Revenue was $1886.08M in the last fiscal year compared to $1525.16M three years ago, Operating Income was $73.08M in the last fiscal year compared to $41.32M three years ago, EPS was $(0.65) in the last fiscal year compared to $4.07 three years ago, and ROE was (2.88%) in the last year compared to 3.0% three years ago.

MORE FROM FORBESEchostar (SATS)

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