We’ve seen a see-saw in the markets the last few weeks. Two weeks ago, the indices saw their worst pullback since October thanks to wild retail trades. They also declined in two of three weeks. Now? The indices are on a five-day winning streak, on pace for a sixth up day in a row, and trading at record highs. The economic outlook is certainly improving, stimulus could be days away from final approval, earnings are outstanding, and the vaccine administration is getting better by the day. COVID numbers continue to plummet worldwide as well. Despite overinflated valuations and some inflation-related concerns, sentiment is currently rosy for what could be a strong second half of the year. With more earnings on tap for the coming week, 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
Microsoft Corp (MSFT)
Microsoft is once again rated a Top Buy 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. Microsoft is one of the many big companies that reported blowout earnings over the last few weeks, 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 0.08% to $242.2 on volume of 18,054,752 vs its 10-day price average of $237.2 and its 22-day price average of $226.74, and is up 11.26% 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 5.52% over the next 12 months, and the stock is trading with a Forward 12M P/E of 32.1.
Advanced Micro Devices (AMD)
Semiconductor upstart Advanced Micro Devices is also a Top Buy for the second week in a row. The stock was one of the biggest winners during 2020, and continues to not only compete with but also beat semiconductor leaders such as Intel. The AMD stock saw a pullback despite reporting record earnings, however its trajectory is still looking quite impressive. Our AI systems rated Advanced Micro Devices B in Technicals, A in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.07% to $87.9 on volume of 30,268,677 vs its 10-day price average of $89.1 and its 22-day price average of $90.77, and is down 4.77% for the year. Revenue was $9763.0M in the last fiscal year compared to $496.0M three years ago, Operating Income was $1369.0M in the last fiscal year compared to $496.0M three years ago, EPS was $2.06 in the last fiscal year compared to $0.32 three years ago, and ROE was 57.48% in the last year compared to 36.2% three years ago. The stock is also trading with a Forward 12M P/E of 45.83.
Attractive
Facebook (FB)
Facebook is our first Attractive stock for the third week in a row. 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. Facebook two weeks ago reported strong earnings that beat estimates, while also cautioning shareholders on privacy changes with Apple. 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 0.6% to $268.1 on volume of 12,454,367 vs its 10-day price average of $268.59 and its 22-day price average of $264.45, and is down 0.31% 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 24.15.
Netflix (NFLX)
Netflix is again an Attractive trending stock for the second week in a row. 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 just lost nearly 1 billion hours worth of content after many of its licensing contracts expired. The stock reported stronger than expected earnings and shocked investors with its subscriber growth. The company keeps indicating that its dominance in the streaming space will be hard to contest. 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 0.25% to $550.79 on volume of 2,376,175 vs its 10-day price average of $544.26 and its 22-day price average of $531.61, and is up 5.34% 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 55.52.
Neutral
Mastercard Inc (MA)
Mastercard is a Neutral stock for the second 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. Our AI systems rated Mastercard D in Technicals, D in Growth, C in Low Volatility Momentum, and B in Quality Value. The stock closed down 0.61% to $338.75 on volume of 2,963,377 vs its 10-day price average of $328.13 and its 22-day price average of $333.84, and is down 3.62% for the year. Revenue was $15301.0M in the last fiscal year compared to $14950.0M three years ago, Operating Income was $8154.0M 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 42.04.
Johnson & Johnson (JNJ)
Johnson & Johnson is also a Neutral stock for the second week in a row. 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 potential one-dose COVID vaccine that does not need to be stored at ultra cold temperatures. It released its initial clinical trial results two weeks ago that showed promising results, and could be days away from emergency use approval from the FDA. Our AI systems rated the company D in Technicals, C in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.52% to $164.45 on volume of 9,482,959 vs its 10-day price average of $164.75 and its 22-day price average of $162.48, and is up 5.08% for the year. Revenue was $82584.0M in the last fiscal year compared to $81581.0M three years ago, Operating Income was $19914.0M 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 23.74% in the last year compared to 25.51% three years ago. The stock is also trading with a Forward 12M P/E of 17.3.
Intel Corp (INTC)
Intel is our final Neutral trending stock this week. Although a staple in tech and chipmaking, Intel lagged behind its competitors in 2020 despite the semiconductor sector outperforming. This coming year could be murky for the company, however it has performed strongly thus far amid signs that the company could stage a recovery through diversifying its operations. It recently seems to have gained some market share on the hot AMD, and seems to directly be taking on Apple’s M1 chip with benchmarks. Our AI systems rated Intel C in Technicals, D in Growth, C in Low Volatility Momentum, and B in Quality Value. The stock closed down 1.04% to $58.18 on volume of 23,432,611 vs its 10-day price average of $56.22 and its 22-day price average of $55.8, and is up 17.82% for the year. Revenue was $77867.0M in the last fiscal year compared to $70848.0M three years ago, Operating Income was $23876.0M in the last fiscal year compared to $23244.0M three years ago, EPS was $4.94 in the last fiscal year compared to $4.48 three years ago, and ROE was 26.36% in the last year compared to 29.33% three years ago. The stock is also trading with a Forward 12M P/E of 12.27.
Unattractive
Boeing Co (BA)
Boeing remains on our list as an Unattractive stock. Boeing went on quite a rally to close off 2020, however the aircraft manufacturer is still faced with mounting concerns of its 737 planes, and its business model. Until the pandemic is brought under control, Boeing will simply not return to normal levels of production and revenue. Despite its revenue exceeding expectations, Boeing’s latest earnings report was overall more dismal than anyone thought. Our AI systems rated Boeing A in Technicals, C in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed down 1.29% to $207.93 on volume of 9,525,417 vs its 10-day price average of $201.36 and its 22-day price average of $205.42, and is up 2.57% 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.
American Airlines Group Inc (AAL)
American Airlines is our other Unattractive trending stock. American Airlines was one of the stocks seeing a significant price uptick two weeks ago thanks to “Reddit Investors” along with the likes of GameStop and AMC. Airline stocks have seen a strong recovery since the first vaccines were announced, however, some very real near term concerns remain for the industry. American Airlines is the largest airline in the world in terms of number of passengers carried, fleet size, and scheduled passenger-kilometers. Until things get back to normal though, nobody really knows when travel demand will return to pre-pandemic levels. Some believe that international travel may not return to normal until 2024. Our AI systems rated American Airlines A in Technicals, F in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed down 1.21% to $17.19 on volume of 30,910,225 vs its 10-day price average of $16.84 and its 22-day price average of $16.2, and is up 13.62% for the year. Revenue was $17337.0M in the last fiscal year compared to $44541.0M three years ago, Operating Income was $(11387.0)M in the last fiscal year compared to $3757.0M three years ago, and EPS was $(18.36) in the last fiscal year compared to $3.03 three years ago.
Exxon Mobil Corp (XOM)
Exxon Mobil Corp is our final Unattractive 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 nearly a year. However, this remains a volatile and unpredictable sector- especially under a Biden administration that is expected to move away from fossil fuels. But companies like Exxon are looking to get more involved in carbon capture and renewables. Our AI systems rated the company A in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.35% to $49.95 on volume of 34,951,016 vs its 10-day price average of $46.53 and its 22-day price average of $47.07, and is up 20.36% for the year. Revenue was $181502.0M in the last fiscal year compared to $279332.0M three years ago, Operating Income was $(28883).0M in the last fiscal year compared to $21539.0M three years ago, EPS was $(5.25) in the last fiscal year compared to $4.88 three years ago, and ROE was (12.12)% three years ago compared to 10.9% three years ago. Forward 12M Revenue is expected to grow by 24.29% over the next 12 months and the stock is trading with a Forward 12M P/E of 23.57.
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