Trending Stocks For This Week As Markets Remain Sensitive To News

Mixed sentiment is once again the theme. On one hand, a stimulus package finally passed and a second coronavirus vaccine (Moderna) is on the way to “save the day.” On the other hand, COVID-19 is surging to record levels and a new strain discovered in the U.K. may be more contagious and infectious. As a result, stricter shutdowns are being implemented worldwide, including 27 countries which have banned flight to and from the U.K. Although last week ended mildly positive, and have largely kept the election and vaccine rally which started in November moving, there have been several indicators that show markets may be overheating, and that the economic recovery may be slowing down. Tesla’s official addition to the S&P 500 may cause a surge in volume and volatility as well. There may be a light at the end of the tunnel of this pandemic with the vaccines, and the second half of 2021 could be bullish for everyone. But for now, some more pain and some short-term jitters could spook investors. In this shortened trading week due to the Christmas holiday, it is anyone’s guess what could happen. 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.

Verizon Communications Inc (VZ)

Verizon Communications is our first Top Buy for the week. Verizon is one of the largest telecom companies in the U.S., and is the second largest telecom company in terms of revenue behind only AT&T. Our AI systems rated Verizon B in Technicals, C in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 0.75% to $60.46 on volume of 29,768,607 vs its 10-day price average of $60.6 and its 22-day price average of $60.64, and is up 3.39% 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 3.29% over the next 12 months, and the stock is trading with a Forward 12M P/E of 12.19.

Pfizer Inc (PFE)

Pfizer is our next Top Buy for the second week in a row. After announcing clinical results of its COVID vaccine on November 9th, Pfizer has almost single handedly spurred a major market rally and flickered on a light at the end of the pandemic tunnel. However, since its vaccine has begun its roll-out process, Pfizer’s stock has pulled back and may be at an attractive entry point. Although it will not be the only vaccine, and has witnessed some supply chain and distribution issues, it still remains one of the world’s largest pharmaceutical companies and a stable dividend payer. Our AI systems rated Pfizer C in Technicals, B in Growth, A in Momentum Volatility, and C in Quality Value. The stock closed down 0.92% to $37.68 on volume of 60,135,636 vs its 10-day price average of $40.0 and its 22-day price average of $38.86, and is up 5.72% 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 17.95% over the next 12 months, and the stock is trading with a Forward 12M P/E of 13.36.

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Attractive

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

Microsoft Corp (MSFT)

Microsoft is our first Attractive stock for the second week in a row. 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 also continued to innovate, grow, and adapt to any changes in the marketplace. As we are firmly in the holiday shopping season, Microsoft could also have a very remainder of 2020h. Our AI systems rated Microsoft D in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 0.38% to $218.59 on volume of 63,354,922 vs its 10-day price average of $215.15 and its 22-day price average of $214.21, and is up 37.53% 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 2.48% over the next 12 months, and the stock is trading with a Forward 12M P/E of 32.45.

Facebook (FB)

Facebook is rated Attractive for the second consecutive week. Although Facebook seemingly can’t stay out of the news due to censorship controversies, and mounting antitrust issues, our AI systems remain bullish on the social media giant. Our AI systems rated Facebook D in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed up 0.7% to $276.4 on volume of 24,667,086 vs its 10-day price average of $277.39 and its 22-day price average of $277.26, and is up 31.76% 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 18.88% over the next 12 months, and the stock is trading with a Forward 12M P/E of 27.91.

Neutral Rated

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

Nike Inc (NKE)

Apparel giant Nike is our first Neutral rated trending stock for this week. Nike has had a strong 2020 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 was valued over $32 billion making it the most valuable brand among sports businesses. Nike also recently posted impressive Q2 earnings driven largely by its strong digital channel and ecommerce. Our AI systems rated Nike C in Technicals, C in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed down 2.29% to $137.28 on volume of 17,884,826 vs its 10-day price average of $138.34 and its 22-day price average of $136.16, and is up 35.6% for the year. Revenue grew by 2.28% over the last three fiscal years and grew by 5.1% over the last three fiscal years, while Operating Income grew by 18.72% in the last fiscal year, and EPS grew by 12.86% in the last fiscal year and grew by 54.34% 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 6.73% over the next 12 months, and the stock is trading with a Forward 12M P/E of 41.1.

Wells Fargo & Co (WFC)

Wells Fargo is our next Neutral stock of the week. In terms of market cap, the banking giant is the fourth-largest bank in the world. It is also the fourth largest bank in the U.S. by total assets, and as of 2018, is ranked number 26 on the Fortune 500. Our AI systems rated Wells Fargo B in Technicals, D in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed down 1.56% to $29.01 on volume of 53,459,834 vs its 10-day price average of $29.24 and its 22-day price average of $28.37, and is down 43.88% for the year. Revenue was $82458.0M in the last fiscal year compared to $85989.0M three years ago, Operating Income was $25097.0M in the last fiscal year compared to $29816.0M three years ago, EPS was $4.05 in the last fiscal year compared to $4.1 three years ago, and ROE was 10.41% in the last year compared to 10.99% three years ago. The stock is also trading with a Forward 12M P/E of 14.18.

Netflix (NFLX)

Netflix is our next Neutral stock for the second week in a row. The streaming media giant has been a major winner in 2020, and continues to have a bright future- despite competition increasing in the streaming space and several content licenses expiring once 2021 begins. Our AI systems have rated Netflix F in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.29% to $534.45 on volume of 4,502,692 vs its 10-day price average of $516.07 and its 22-day price average of $502.08, and is up 62.05% 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 14.0% over the next 12 months, and the stock is trading with a Forward 12M P/E of 61.64.

Intl Business Machines Corp (IBM)

Intl Business Machines Corp, more commonly known as IBM, is our final next Neutral stock of the week. IBM is a longtime technology and consulting company, and has continued to evolve and pivot its operations with the changing times. Recently, IBM has gotten more involved in fintech, cloud computing, and business solutions. Our AI systems rated IBM Cin Technicals, D in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.24% to $125.85 on volume of 7,217,261 vs its 10-day price average of $125.28 and its 22-day price average of $123.59, and is down 2.22% for the year. EPS grew by 43.8% over the last three fiscal years. Revenue was $77147.0M in the last fiscal year compared to $79139.0M three years ago, Operating Income was $10785.0M in the last fiscal year compared to $11682.0M three years ago, EPS was $10.57 in the last fiscal year compared to $6.14 three years ago, and ROE was 49.77% in the last year compared to 31.89% three years ago. Forward 12M Revenue is expected to grow by 0.92% over the next 12 months, and the stock is trading with a Forward 12M P/E of 14.22.

Unattractive

Two of our Top Trending Stocks were identified as Unattractive this week.

Boeing Co (BA)

Boeing is back on our list as an Unattractive stock, and has been so for over a month straight. Although Boeing has been on quite a run since the start of November, this new COVID strain could be very concerning for Boeing’s business, and the travel business as a whole. Until the pandemic is brought under control somewhat, Boeing will not return to normal pre-pandemic levels of production and revenue. Pay attention to this as well- Southwest Airlines once again deferred Boeing 737 MAX deliveries. Our AI systems rated Boeing B in Technicals, C in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed down 0.67% to $219.75 on volume of 17,898,016 vs its 10-day price average of $229.65 and its 22-day price average of $222.12, and is down 33.68% 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 23.29% over the next 12 months.

Exxon Mobil Corp (XOM)

Exxon Mobil Corp is our next Unattractive stock this week. The energy sector as a whole is very volatile and unpredictable these days, and Exxon Mobil is no exception. Exxon Mobil is a multinational oil and gas corporation, one of the world’s largest companies in terms of revenue, and one of the largest oil companies in the world. Our AI systems rated the company B in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 1.72% to $42.73 on volume of 41,421,677 vs its 10-day price average of $42.89 and its 22-day price average of $40.97, and is down 34.92% for the year. Revenue was $255583.0M in the last fiscal year compared to $237162.0M three years ago, Operating Income was $11631.0M in the last fiscal year compared to $14074.0M three years ago, EPS was $3.36 in the last fiscal year compared to $4.63 three years ago, and ROE was 7.43% three years ago compared to 10.78% three years ago. Forward 12M Revenue is expected to grow by 20.19% over the next 12 months and the stock is trading with a Forward 12M P/E of 39.6.

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