Johnson & Johnson Among Top Stocks To Buy This Week

The markets see-sawed in January, and February saw an early rally. However, February closed off with a minor downturn — especially for tech stocks. Bond yields can be thanked for this. The 10-year rate eclipsed a yield of as high as 1.6% for the first time in over a year last week and ended the week more elevated than the S&P 500’s dividend yield. While rising bond yields are a good sign that pre-pandemic consumer activity and an open economy could be closer than we realize, it’s an ominous sign for growth stocks and inflation. If this yield gets much higher, the Fed may not necessarily have a choice but to hike interest rates sooner than they expected — despite the long road back towards a pre-pandemic economy. Although President Biden’s aggressive stimulus could pump up the economy, and the approval of JnJ’s one dose vaccine can indeed turn the tide of the pandemic, rising bond yields are certainly a near-term concern. Time will tell what happens with bond yields, or if they will cool off and help stocks, but the deep learning algorithms at Q.ai have used Artificial Intelligence (“AI”) technology to rate the Top Trending Stocks this week.

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Top Buy

Johnson & Johnson (JNJ)

Johnson & Johnson is our first 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 finally receiving FDA emergency use approval. Expected to be distributed as early as Tuesday, this one dose vaccine that does not need to be stored at ultra cold temperatures could be potentially game changing in our fight against the pandemic. Our AI systems rated the company B in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 2.64% to $158.46 on volume of 14,341,538 vs its 10-day price average of $162.7 and its 22-day price average of $163.18, and is up 1.88% 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 16.67.

Mastercard Inc (MA)

Mastercard is a Top Buy for the third week in a row. 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 the announcement that it will begin facilitating cryptocurrency transactions in 2021. Our AI systems rated Mastercard C in Technicals, B in Growth, B in Low Volatility Momentum, and A in Quality Value. The stock closed down 0.2% to $353.85 on volume of 4,867,208 vs its 10-day price average of $345.8 and its 22-day price average of $337.72, and is up 0.67%  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 44.1.

Nvidia Corp (NVDA)

Nvidia is our next Top Buy this week. Nvidia has been one of the hottest and most beloved tech names over the last several years, and last year was no exception. 2021 could be an even bigger year for Nvidia due to its GPU drivers. Despite falling after its latest blowout earnings report, its price target was raised to $700 by Susquehanna, and its products and services have never been in more demand as they are today. Our AI systems rated Nvidia B in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed up 3.06% to $548.58 on volume of 12,523,260 vs its 10-day price average of $579.89 and its 22-day price average of $564.05, and is up 4.58% for the year. Revenue was $16675.0M in the last fiscal year compared to $11716.0M three years ago, Operating Income was $4721.0M in the last fiscal year compared to $3804.0M three years ago, EPS was $6.9 in the last fiscal year compared to $6.63 three years ago, and ROE was 29.78% in the last year compared to 49.26% three years ago. The stock is also trading with a Forward 12M P/E of 41.23.

Microsoft Corp (MSFT)

Microsoft is the next Top Buy this 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 also continued to innovate, grow, and adapt to any changes in the marketplace. Microsoft is one of the many big companies that reported blowout earnings over the last month, and saw a 17% growth in revenue thanks to its surging cloud business. Our AI systems rated Microsoft C in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.48% to $232.38 on volume of 37,819,227 vs its 10-day price average of $238.02 and its 22-day price average of $238.97, and is up 6.99% for the year. Revenue grew by 7.18% in the last fiscal year and grew by 38.89% over the last three fiscal years, Operating Income grew by 13.59% in the last fiscal year and grew by 71.59% over the last three fiscal years, and EPS grew by 16.45% in the last fiscal year and grew by 214.9% 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 5.53% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.82.

Attractive

Home Depot Inc (HD)

Home Depot is our first Attractive stock. As the largest home improvement retailer in the US, Home Depot has been in strong demand due to more and more people staying at home thanks to COVID-related restrictions. Although many of these restrictions are starting to ease, Home Depot raised its dividends and topped earnings estimates with sales surging by 25%. Our AI systems rated Home Depot C in Technicals, C in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.21% to $258.34 on volume of 7,868,487 vs its 10-day price average of $271.32 and its 22-day price average of $273.76, and is down 2.11% for the year. Revenue was $132110.0M in the last fiscal year compared to $108203.0M three years ago, Operating Income was $18278.0M in the last fiscal year compared to $15777.0M three years ago, EPS was $11.94 in the last fiscal year compared to $9.73 three years ago, and ROE was 14061.2% in the last year. The stock is also trading with a Forward 12M P/E of 20.38.

Netflix (NFLX)

Netflix is our next Attractive trending stock. The streaming media giant was a major winner last year, and could have a strong year full of fresh content. However, despite claiming that it will provide weekly original movies in 2021, Netflix lost nearly 1 billion hours worth of content after many of its licensing contracts expired. The stock recently reported stronger than expected earnings and shocked investors with its subscriber growth. Our AI systems rated Netflix C in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 1.44% to $538.85 on volume of 3,755,574 vs its 10-day price average of $547.25 and its 22-day price average of $546.57, and is up 3.06% 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 54.32.

Facebook (FB)

Facebook is our third and final Attractive trending stock. Facebook, and other tech stocks for that matter, have not seen any threats of tax hikes or regulatory increases under a Biden presidency just yet. However, the social media giant seemingly can’t stay out of the news due to censorship controversies, as well as transparency and privacy issues. Rising bond yields have also hurt the stock as of late. Our AI systems rated Facebook C in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.15% to $257.62 on volume of 26,619,517 vs its 10-day price average of $265.18 and its 22-day price average of $266.18, and is down 4.21%  for the year. Revenue was $85965.0M in the last fiscal year compared to $55838.0M three years ago, Operating Income was $32671.0M in the last fiscal year compared to to $24913.0M three years ago, EPS was $10.09 in the last fiscal year compared to $7.57 three years ago, and ROE was 25.42% in the last year compared to to 27.91% three years ago. The stock is also trading with a Forward 12M P/E of 23.14.

Unattractive

Morgan Stanley (MS)

Morgan Stanley is an Unattractive stock for the second consecutive week. One of the largest investment banks in the world, Morgan Stanley continues to benefit from the influx of retail investors pouring into the market. After acquiring E-Trade last year, Morgan Stanley seems to be furthering its imprint on the retail brokerage space. 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 B in Technicals, C in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed down 1.99% to $76.87 on volume of 30,391,224 vs its 10-day price average of $76.7 and its 22-day price average of $73.76, and is up 13.06% 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 13.37.

Salesforce.Com Inc (CRM)

Salesforce is our other Unattractive trending stock this week. 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. Despite plummeting after its latest earnings report, Salesforce reported revenue growth, and increased its 2021 and 2022 projections. Our AI systems rated Salesforce C in Technicals, C in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed down 6.31% to $216.5 on volume of 20,357,837 vs its 10-day price average of $239.48 and its 22-day price average of $236.35, and is down 1.73% for the year. Revenue was $21252.0M in the last fiscal year compared to $13282.0M three years ago, Operating Income was $455.0M in the last fiscal year compared to $559.0M three years ago, EPS was $4.38 in the last fiscal year compared to $1.43 three years ago, and ROE was 10.8% in the last year compared to 8.54% three years ago. The stock is also trading with a Forward 12M P/E of 62.58.

Top Short

Boeing Co (BA)

Boeing is a Top Short for the third week in a row. After a Boeing 777 saw its engine explode last weekend in mid-air, the FAA suspended more than 20 of its older planes. Fortunately, more people didn’t get hurt or worse. Boeing also remains faced with concerns of the sustainability of its business with new COVID strains continuing to batter the travel industry. Until the pandemic is brought under control, Boeing will simply not return to normal levels of production and revenue. Our AI systems rated Boeing D in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 2.05% to $212.01 on volume of 12,806,143 vs its 10-day price average of $215.24 and its 22-day price average of $209.56, and is up 4.58% 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.  

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