Ever since the second half of February, we’ve seen a significant rotation in the market. It’s not so much that bond yields have risen — they’re still at historically low levels. It’s the speed at which they’ve increased that’s alarmed investors. Tech stocks especially have been slammed, with the Nasdaq NDAQ briefly entering a correction last week. Currently, the 10-year yield is at around 1.6% for the first time in over a year and is higher than the S&P 500’s dividend yield. While these rising yields are a good sign that pre-pandemic consumer activity could be closer than we realize, it’s an ominous sign for growth stocks and inflation. President Biden’s aggressive $1.9 trillion stimulus plan, which the Senate approved over the weekend, could continue to pump up the economy. However, if the GDP overheats as the stimulus package could very well do, inflation is all but a certainty. Time will tell what happens with the market, but the deep learning algorithms at Q.ai have used Artificial Intelligence (“AI”) technology to rate the Top Trending Stocks this week.
Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.
Top Buy
Costco Wholesale Corp (COST)
Membership-only warehouse retailer Costco is our first Top Buy this week. Costco as of 2015, was the second largest retailer in the world after Walmart WMT , and the world’s largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016. Our AI systems rated Costco C in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed down 0.54% to $317.32 on volume of 8,102,777 vs its 10-day price average of $331.85 and its 22-day price average of $344.89, and is down 16.36% for the year. Revenue grew by 7.11% in the last fiscal year and grew by 26.17% over the last three fiscal years, Operating Income grew by 7.36% in the last fiscal year and grew by 44.33% over the last three fiscal years, EPS grew by 8.42% in the last fiscal year and grew by 37.93% over the last three fiscal years. Revenue was $166761.0M in the last fiscal year compared to $141576.0M three years ago, Operating Income was $6023.0M in the last fiscal year compared to $4480.0M three years ago, EPS was $9.02 in the last fiscal year compared to $7.09 three years ago, and ROE was 23.68% in the last year compared to 26.29% three years ago. Forward 12M Revenue is expected to grow by 2.71% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.61.
Simple moving average of Costco Wholesale Corp (COST)
stock charts
Johnson & Johnson (JNJ)
Johnson & Johnson JNJ is our next Top Buy this week. Johnson & Johnson is a blue chip American medical devices, pharmaceutical, and consumer packaged goods company. It has been in the news a lot lately due to its one-dose COVID vaccine beginning its distribution last week. Because it’s only one dose that does not need to be stored at ultra cold temperatures, it could be potentially game changing in our fight against the pandemic. Our AI systems rated the company A in Technicals, C in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 1.98% to $156.1 on volume of 8,326,195 vs its 10-day price average of $158.98 and its 22-day price average of $161.57, and is up 0.37% for the year. Revenue was $82584.0M in the last fiscal year compared to $81581.0M three years ago, Operating Income was $20014.0M in the last fiscal year compared to $21175.0M three years ago, EPS was $5.51 in the last fiscal year compares to $5.61 three years ago, and ROE was 23.97% in the last year compared to 25.51% three years ago. The stock is also trading with a Forward 12M P/E of 16.41.
Simple moving average of Johnson & Johnson (JNJ)
stock charts
Attractive
Morgan Stanley (MS)
Morgan Stanley MS is an Attractive stock this week, after coming in Unattractive for the last two weeks. As one of the largest investment banks in the world, Morgan Stanley continues to benefit from the influx of retail investors pouring into the market. Plus, with rising bond yields indicating a return of inflation and a heating up economy, Morgan Stanley and the banking sector could benefit. With offices in more than 42 countries, Morgan Stanley, as of 2018, also ranked No. 67 in the Fortune 500 list of the largest US companies by total revenue. Our AI systems rated Morgan Stanley A in Technicals, A in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.3% to $80.87 on volume of 16,360,260 vs its 10-day price average of $79.41 and its 22-day price average of $76.53, and is up 18.94% for the year. Revenue was $48198.0M in the last fiscal year compared to $40107.0M three years ago, Operating Income was $17903.0M in the last fiscal year compared to $13719.0M three years ago, EPS was $6.46 in the last fiscal year compared to $4.73 three years ago, and ROE was 12.96% in the last year compared to 11.12% three years ago. The stock is also trading with a Forward 12M P/E of 14.01.
Simple moving average of Morgan Stanley (MS)
stock charts
Netflix (NFLX)
Netflix NFLX is our next Attractive trending stock. The streaming media giant has been a major pandemic-era winner, and could have a strong year ahead full of fresh content. With the rotation out of high growth stocks like Netflix, though, it remains to be seen how the stock will perform over the next few weeks. Our AI systems rated Netflix C in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.0% to $516.39 on volume of 5,069,973 vs its 10-day price average of $536.57 and its 22-day price average of $544.99, and is down 1.24% for the year. Revenue was $24996.06M in the last fiscal year compared to $15794.34M three years ago, Operating Income was $4585.29M in the last fiscal year compared to $1605.23M three years ago, EPS was $6.08 in the last fiscal year compared to $2.68 three years ago, and ROE was 29.62% in the last year compared to 27.46% three years ago. The stock is also trading with a Forward 12M P/E of 52.06.
Simple moving average of Netflix (NFLX)
stock charts
Neutral
Mastercard Inc (MA)
Mastercard is our first Neutral stock this week. Mastercard has evolved into more than just a credit card company, and has become a FinTech innovator with global technological solutions. Mastercard’s latest earnings report impressed, and signaled a potential economic recovery to come. With Bitcoin and blockchain technology continuing to evolve, grow, and innovate, Mastercard has made waves with its foray into facilitating cryptocurrency transactions. Our AI systems rated Mastercard D in Technicals, C in Growth, C in Low Volatility Momentum, and B in Quality Value. The stock closed up 3.26% to $360.88 on volume of 4,641,775 vs its 10-day price average of $356.32 and its 22-day price average of $346.1, and is up 2.67% for the year. Revenue was $15301.0M in the last fiscal year compared to $14950.0M three years ago, Operating Income was $8162.0M in the last fiscal year compared to $8418.0M three years ago, EPS was $6.37 in the last fiscal year compared to $5.6 three years ago, and ROE was 102.51% in the last year compared to 105.98% three years ago. The stock is also trading with a Forward 12M P/E of 44.99.
Simple moving average of Mastercard Inc (MA)
stock charts
Intl Business Machines Corp (IBM)
Intl Business Machines Corp, more commonly known as IBM IBM , is our next Neutral trending stock. IBM is a longtime technology and consulting company, and has continued to evolve and pivot its operations with the changing times. It has gotten significantly more involved in cloud computing and blockchain technology as of late. Our AI systems rated IBM A in Technicals, C in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.26% to $122.83 on volume of 6,944,494 vs its 10-day price average of $121.25 and its 22-day price average of $120.8, and is up 0.43% for the year. Revenue was $73621.0M in the last fiscal year compared to $79591.0M three years ago, Operating Income was $8584.0M in the last fiscal year compared to $13218.0M three years ago, EPS was $6.23 in the last fiscal year compared to $9.52 three years ago, and ROE was 26.38% % in the last year compared to 50.34% three years ago. The stock is also trading with a Forward 12M P/E of 11.13.
Simple moving average of Intl Business Machines Corp (IBM)
stock charts
Gap Inc (GPS)
Gap Inc is our next Neutral trending stock this week. Gap is a retailer of casual apparel, accessories, and personal care products for men, women, and children. Outside of its Gap brand, the company is also well known for Old Navy, Banana Republic, and other brands. Like most retailers, the company has been a strong reopening play thus far in 2021. Our AI systems rated the company B in Technicals, C in Growth, F in Low Volatility Momentum, and C in Quality Value. The stock closed up 7.6% to $27.31 on volume of 18,838,687 vs its 10-day price average of $25.52 and its 22-day price average of $24.0, and is up 42.09% for the year. Revenue was $13800.0M in the last fiscal year compared to $16580.0M three years ago, Operating Income was $(862.0).0M in the last fiscal year compared to $1374.0M three years ago, EPS was $(1.78) in the last fiscal year compared to $2.59 three years ago, and ROE was (22.43%) three years ago compared to 29.95% three years ago. The stock is also trading with a Forward 12M P/E of 21.08.
Simple moving average of Gap Inc (GPS)
stock charts
Exxon Mobil Corp (XOM)
Exxon Mobil Corp XOM is our final Neutral stock this week. 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. The energy sector has been one of the top performers thus far in 2021. With supply cuts and improving outlook, oil prices have hit their highest prices in some time. Our AI systems rated the company A in Technicals, F in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed up 3.78% to $60.93 on volume of 51,390,561 vs its 10-day price average of $56.48 and its 22-day price average of $53.21, and is up 49.34% for the year. Revenue was $179784.0M in the last fiscal year compared to $281060.0M three years ago, Operating Income was $(28382.0)M in the last fiscal year compared to $23267.0M three years ago, EPS was $(5.25) in the last fiscal year compared to $4.88 three years ago, and ROE was (12.81)% three years ago compared to 10.9% three years ago. The stock is also trading with a Forward 12M P/E of 24.93.
Simple moving average of Exxon Mobil Corp (XOM)
stock charts
Unattractive
Boeing Co (BA)
Boeing is our first Unattractive stock. Boeing is a worldwide leading aircraft manufacturer. However, with continuous controversies over the safety of its planes, along with fresh COVID strains continuing to batter the travel industry, it does not appear that Boeing will return to normal levels of production and revenue until the pandemic is eradicated. Our AI systems rated Boeing C in Technicals, B in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed down 0.66% to $223.22 on volume of 19,981,110 vs its 10-day price average of $220.68 and its 22-day price average of $216.0, and is up 10.11% for the year. Revenue was $58158.0M in the last fiscal year compared to $101127.0M three years ago, Operating Income was $(8659.0)M in the last fiscal year compared to $11843.0M three years ago, EPS was $(20.88) in the last fiscal year compared to $17.85 three years ago, and ROE was 985.4% three years ago.
Simple moving average of Boeing Co (BA)
stock charts
Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.
