Top Tech Stocks For November

Tech stocks have been the biggest winners of the COVID world, surging ever since markets bottomed in March, and leading the recovery. However, we have potentially reached a crossroads. The Nasdaq sharply sold off earlier this week due to vaccine data from Pfizer and BioNTech revealing a 90% efficacy rate. Investors sharply and furiously rotated out of tech stocks and into cyclical value stocks, with tech shares experiencing sharp losses and volatility. While things have somewhat stabilized as this week has gone on and tech shares somewhat recovered, there certainly are unanswered questions. Will this rotation be a long term trend once COVID eventually dies down? Or are we still in this COVID world for the long haul? After all, numbers are still surging to record highs with further shutdowns imminent. Additionally, bullish tech investors are encouraged that we are likely to see a divided Congress- a positive catalyst for no higher taxes or regulations. While there are signs that tech can continue its furious rally, there are bearish indicators as well. Despite the mixed sentiments, our Artificial Intelligence (“AI”) algorithms at Q.ai have identified intriguing tech stocks. Two have been rated as Top Buys, two rated as Attractive, two rated as Neutral, two rated as Unattractive, and two rated as Top Shorts. 

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Top Buy

Activision Blizzard (ATVI)

Activision Blizzard is our first Top Buy for the month. The gaming industry has been booming the last several years, and with more people at home due to COVID, appears to be gaining even more steam. Best known for its Call of Duty and Guitar Hero video game franchises, our AI systems have rated Activision A in Technicals, A in Growth, B in Momentum Volatility, and B in Quality Value. Activision closed up 0.21% to $76.71 on volume of 4,881,896 vs its 10-day price average of $77.05 and its 22-day price average of $78.89, and is up 30.79% for the year. Revenue grew by 18.05% in the last fiscal year and grew by 9.16% over the last three fiscal years, Operating Income grew by 52.81% in the last fiscal year and grew by 101.28% over the last three fiscal years, and EPS grew by 46.11% in the last fiscal year and grew by 691.43% over the last three fiscal years. Revenue was $6489.0M in the last fiscal year compared to $7017.0M three years ago, Operating Income was $1744.0M in the last fiscal year compared to $1324.0M three years ago, EPS was $1.95 in the last fiscal year compared to $0.36 three years ago, and ROE was 12.42% in the last year compared to 2.94% three years ago. The stock is also trading with a Forward 12M P/E of 23.12.

MORE FROM FORBESActivision Blizzard (ATVI)

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Take-Two Interactive (TTWO)

Our second Top Buy for the month is Take-Two Interactive. Take-Two is another gaming giant with even more upside potential as people continue staying at home. Take-Two Interactive is best known for its GTA, NBA 2K, and Red Dead franchises, and is also at the forefront of competitive esports as it owns 50% of the NBA 2K league. Our AI systems rated Take-Two Interactive with a nearly perfect score with ratings of A in Technicals, A in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed down 0.84% to $160.22 on volume of 1,411,240 vs its 10-day price average of $161.21 and its 22-day price average of $163.59, and is up 31.24% for the year. Revenue grew by 8.88% in the last fiscal year and grew by 87.58% over the last three fiscal years, Operating Income grew by 21.79% in the last fiscal year and grew by 242.22% over the last three fiscal years, and EPS grew by 16.49% in the last fiscal year and grew by 168.21% over the last three fiscal years. Revenue was $3088.97M in the last fiscal year compared to $1792.89M three years ago, Operating Income was $425.35M in the last fiscal year compared to $151.38M three years ago, EPS was $3.54 in the last fiscal year compared to $1.54 three years ago, and ROE was 17.66% in the last year compared to 13.92% three years ago. The stock is also trading with a Forward 12M P/E of 42.01.

MORE FROM FORBESTake-Two Interactive Software (TTWO)

Attractive

Apple Inc (AAPL)

Our first Attractive top tech stock is Apple. While Apple has had its ups and downs ever since its stock split, the outlook is largely bullish and exciting for the rest of 2020. Apple has proven to be consistent and resilient no matter the situation. Our AI systems have rated Apple A in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.23% to $119.21 on volume of 103,350,700 vs its 10-day price average of $115.17 and its 22-day price average of $116.0, and is up 58.76% for the year. Revenue was $274515.0M in the last fiscal year compared to $265595.0M three years ago, Operating Income was $66288.0M in the last fiscal year compared to $70898.0M three years ago, EPS was $3.28 in the last fiscal year compared to $2.98 three years ago, and ROE was 73.69% in the last year compared to 49.36% three years ago. Forward 12M Revenue is expected to grow by 8.87% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.19.

MORE FROM FORBESApple (AAPL)

Facebook (FB)

Facebook is our next Attractive top tech stock to watch. While they have had their share of controversies, and have been under increasing scrutiny due to the election and antitrust issues, our AI systems are bullish on the social media giant. Our AI systems rated Facebook A in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.51% to $275.08 on volume of 12,914,210 vs its 10-day price average of $276.8 and its 22-day price average of $275.09, and is up 31.13% for the year. Revenue grew by 11.71% in the last fiscal year and grew by 94.27% over the last three fiscal years, while Operating Income grew by 17.58% over the last three fiscal years, and EPS grew by 36.52% in the last fiscal year and grew by 62.85% over the last three fiscal years. 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, EPS was $6.43 in the last fiscal year compared to $5.39 three years ago, and ROE was 19.96% in the last year compared to 23.86% three years ago. Forward 12M Revenue is expected to grow by 18.21% over the next 12 months, and the stock is trading with a Forward 12M P/E of 27.88.

MORE FROM FORBESFacebook (FB)

Neutral

Amazon.com (AMZN)

Our first Neutral stock is e-commerce mega company Amazon.com. The e-commerce industry as a whole has been booming in 2020, and Amazon has been at the forefront. Amazon has also successfully grown and diversified its business model as well to be more than simply an online store. Our AI systems rated Amazon A in Technicals, A in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.86% to $3110.28 on volume of 4,371,208 vs its 10-day price average of $3139.0 and its 22-day price average of $3191.92, and is up 63.87% for the year. Revenue grew by 24.03% in the last fiscal year and grew by 95.62% over the last three fiscal years, Operating Income grew by 38.19% in the last fiscal year and grew by 384.78% over the last three fiscal years, and EPS grew by 48.64% in the last fiscal year and grew by 456.14% over the last three fiscal years. Revenue was $280522.0M in the last fiscal year compared to $177866.0M three years ago, Operating Income was $14404.0M in the last fiscal year compared to $4106.0M three years ago, EPS was $23.01 in the last fiscal year compared to $6.15 three years ago, and ROE was 21.94% in the last year compared to 12.91% three years ago. Forward 12M Revenue is expected to grow by 12.89% over the next 12 months, and the stock is trading with a Forward 12M P/E of 79.37.

MORE FROM FORBESAmazon (AMZN)

Tesla Inc (TSLA)

Elon Musk’s electric vehicle juggernaut Tesla is our next Neutral stock. Tesla has now posted 5 consecutive profitable quarters, and in terms of market cap, is now the most valuable automobile maker in the world. Out AI systems rated Tesla A in Technicals, A in Growth, D in Low Volatility Momentum, and C in Quality Value. The stock closed down 1.29% to $411.76 on volume of 19,940,500 vs its 10-day price average of $416.2 and its 22-day price average of $422.52, and is up 378.5% for the year. Revenue grew by 14.64% in the last fiscal year and grew by 139.61% over the last three fiscal years, Operating Income grew by 2053.75% in the last fiscal year and grew by -205.58% over the last three fiscal years, and EPS grew by -153.1% in the last fiscal year and grew by -122.08% over the last three fiscal years. Revenue was $24578.0M in the last fiscal year compared to $11759.0M three years ago, Operating Income was $80.0M in the last fiscal year compared to $(1632.0)M three years ago, EPS was $(0.98) in the last fiscal year compared to $(2.37) three years ago, and ROE was (10.75%) in the last year compared to (38.85%) three years ago. Forward 12M Revenue is expected to grow by 38.08% over the next 12 months, and the stock is trading with a Forward 12M P/E of 109.55.

MORE FROM FORBESTesla (TSLA)

Unattractive

Teladoc Health Inc (TDOC)

Multinational telemedicine and virtual healthcare company Teladoc is our first Unattractive stock for the month. Although Teladoc has performed well this year, with its services in high demand, there are some bearish concerns from our AI systems. Our AI systems rated Teladoc A in Technicals, C in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed up 2.43% to $186.99 on volume of 3,768,704 vs its 10-day price average of $191.54 and its 22-day price average of $207.52, and is up 124.59% for the year. Revenue grew by 56.72% in the last fiscal year and grew by 271.71% over the last three fiscal years, Operating Income grew by -58.9% in the last fiscal year and grew by -51.22% over the last three fiscal years, and EPS grew by -25.23% over the last three fiscal years. Revenue was $553.31M in the last fiscal year compared to $233.28M three years ago, Operating Income was $(73.82)M in the last fiscal year compared to $(62.2)M three years ago, EPS was $(1.38) in the last fiscal year compared to $(1.93) three years ago, and ROE was (9.75%) in the last year compared to (27.04%) three years ago. Forward 12M Revenue is also expected to grow by 55.27% over the next 12 months.

MORE FROM FORBESTeladoc Health (TDOC)

Slack Technologies Inc (WORK)

Workplace solutions software provider Slack is our next Unattractive stock. Slack, through its communications and real-time messaging and file sharing platform, has been a great resource for remote teams in this COVID era. However, with the rise of Microsoft Teams, and other competitors, Slack has been a relative underperformer compared to other “stay-at-home” stocks. Our AI systems rated Slack A in Technicals, C in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed up 2.86% to $25.89 on volume of 8,479,996 vs its 10-day price average of $25.76 and its 22-day price average of $27.88, and is up 12.47% for the year. Revenue grew by 21.85% in the last fiscal year and grew by 248.29% over the last three fiscal years, while Operating Income grew by -46.7% in the last fiscal year, and EPS grew by -58.65% in the last fiscal year and grew by -59.87% over the last three fiscal years. Revenue was $630.42M in the last fiscal year compared to $220.54M three years ago, Operating Income was $(554.18)M in the last fiscal year compared to $(143.85)M three years ago, EPS was $(1.43) in the last fiscal year compared to $(1.47) three years ago, and ROE was (72.61%) in the last year compared to (32.11%) three years ago. Forward 12M Revenue is also expected to grow by 13.2% over the next 12 months.

MORE FROM FORBESSlack Technologies (WORK)

Top Short

Peloton Interactive Inc (PTON)

Peloton is our first Top Short for this month. Although the stock has been one of the biggest COVID winners with its growing remote fitness community and quality exercise bikes, there are definitely concerns that the stock has overheated and peaked. Especially with this vaccine news. Our AI systems rated Peloton A in Technicals, D in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed up 2.36% to $108.72 on volume of 17,022,830 vs its 10-day price average of $112.62 and its 22-day price average of $119.78, and is up 265.57% for the year. Revenue grew by 29.02% in the last fiscal year and grew by 441.56% over the last three fiscal years, Operating Income grew by -583.9% in the last fiscal year and grew by -315.18% over the last three fiscal years, and EPS grew by -149.19% in the last fiscal year and grew by -107.3% over the last three fiscal years. Revenue was $1825.9M in the last fiscal year compared to $435.0M three years ago, Operating Income was $(20.5)M in the last fiscal year compared to $(46.1)M three years ago, EPS was $(0.32) in the last fiscal year compared to $(2.18) three years ago, and ROE was (6.88%) in the last year compared to (44.48%) three years ago. Forward 12M Revenue is expected to grow by 7.63% over the next 12 months, and the stock is trading with a Forward 12M P/E of 265.17.

MORE FROM FORBESPeloton Interactive (PTON)

Square Inc (SQ)

Square Inc is our final Top Short for the month. Another major winner from COVID, Square is a financial services and mobile payment company that also may have overheated and peaked. Our AI systems rated Square A in Technicals, F in Growth, D in Low Volatility Momentum, and D in Quality Value. The stock closed down 2.68% to $178.51 on volume of 9,151,584 vs its 10-day price average of $173.09 and its 22-day price average of $176.11, and is up 179.66% for the year. Revenue grew by 62.34% in the last fiscal year and grew by 245.58% over the last three fiscal years, while Operating Income grew by -13.94% over the last three fiscal years, and EPS grew by -487.55% over the last three fiscal years. Revenue was $4713.5M in the last fiscal year compared to $2214.25M three years ago, Operating Income was $26.56M in the last fiscal year compared to $(54.21)M three years ago, EPS was $0.81 in the last fiscal year compared to $(0.17) three years ago, and ROE was 26.48% in the last year compared to (9.22%) three years ago. Forward 12M Revenue is expected to grow by 35.23% over the next 12 months, and the stock is trading with a Forward 12M P/E of 169.17.

MORE FROM FORBESSquare (SQ)

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