Investing

Mastercard And Microsoft Among Trending Stocks This Week

The markets see-sawed in January, and February saw an early rally. However, in the last two weeks, we may have received another threat to the bull market- bond yields. The 10-year rate eclipsed 1.35% for the first time in over a year. While that’s a good sign that there is consumer activity and we’re economically getting back to normal, 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 vaccine administration continues to improve, these bond yields are certainly a near-term concern. 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.

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Top Buy

Mastercard Inc (MA)

Mastercard is our first Top Buy 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. With Bitcoin recently crossing $50,000, 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 1.56% to $333.17 on volume of 4,064,266 vs its 10-day price average of $337.75 and its 22-day price average of $332.65, and is down 5.21% 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 41.35.

Intl Business Machines Corp (IBM)

Intl Business Machines Corp, more commonly known as IBM, is a Top Buy for the second week in a row. 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 D in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 1.44% to $118.99 on volume of 6,479,937 vs its 10-day price average of $120.8 and its 22-day price average of $120.54, and is down 2.71% for the year. Revenue was $73620.0M in the last fiscal year compared to $79591.0M three years ago, Operating Income was $6814.0M in the last fiscal year compared to $12231.0M 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 10.78.

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. The company’s products and services have never been in more demand as they are today, and it is proving to be a winner in the semiconductor space. Eager investors will be monitoring its earnings report this week- especially after its price target was just raised to $700 by Susquehanna. 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 0.66% to $597.06 on volume of 6,567,589 vs its 10-day price average of $589.04 and its 22-day price average of $560.44, and is up 13.83% for the year. Revenue grew by 35.35% in the last fiscal year and grew by 52.12% over the last three fiscal years, Operating Income grew by 47.68% in the last fiscal year and grew by 30.93% over the last three fiscal years, and EPS grew by 35.34% in the last fiscal year and grew by 26.92%  over the last three fiscal years. Revenue was $10918.0M in the last fiscal year compared to $9714.0M three years ago, Operating Income was $2846.0M in the last fiscal year compared to $3210.0M three years ago, EPS was $4.52 in the last fiscal year compared to $4.82 three years ago, and ROE was 25.95% in the last year compared to 46.05% three years ago. Forward 12M Revenue is expected to grow by 17.52% over the next 12 months, and the stock is trading with a Forward 12M P/E of 53.11.

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 down 1.16% to $240.97 on volume of 24,573,968 vs its 10-day price average of $242.95 and its 22-day price average of $237.64, and is up 10.95% 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 31.96.

Attractive

Analog Devices (ADI)

Analog Devices is our first Attractive stock this week. Analog is a semiconductor company that specializes in data conversion, signal processing and power management technology. Our AI systems rated the company D in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 3.61% to $163.8 on volume of 2,903,445 vs its 10-day price average of $156.97 and its 22-day price average of $154.5, and is up 12.18% for the year. Revenue grew by 4.55% in the last fiscal year, Operating Income grew by 12.42% in the last fiscal year, and EPS grew by 14.96% in the last fiscal year. Revenue was $5603.06M in the last fiscal year compared to $6224.69M three years ago, Operating Income was $1569.48M in the last fiscal year compared to $1959.85M three years ago, EPS was $3.28 in the last fiscal year compared to $4.0 three years ago, and ROE was 10.3% in the last year compared to 14.06% three years ago. Forward 12M Revenue is expected to grow by 1.82% over the next 12 months, and the stock is trading with a Forward 12M P/E of 26.63.

Netflix (NFLX)

Netflix is our other 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 1.46% to $540.22 on volume of 2,719,993 vs its 10-day price average of $553.25 and its 22-day price average of $552.53, and is up 3.32% 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 54.46.

Neutral

Nike Inc. (NKE)

Apparel giant Nike is our first Neutral stock for the second week in a row. Nike had itself a record setting 2020 despite the pandemic, and still remains the world’s largest supplier of athletic shoes and apparel, and the world’s most valuable brand among sports businesses. Our AI systems rated Nike D in Technicals, B in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed down 2.12% to $142.02 on volume of 7,388,224 vs its 10-day price average of $143.12 and its 22-day price average of $140.07, and is up 1.37% 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 24.33% in the last fiscal year, and EPS grew by 10.85% in the last fiscal year and grew by 51.59% 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 6.62% over the next 12 months, and the stock is trading with a Forward 12M P/E of 41.15.

Invesco Ltd (IVZ)

Invesco Ltd is our next Neutral stock. Invesco is an investment management company, and is very well known for its multiple brand names and ETFs. Our AI systems rated the company C in Technicals, A in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed up 2.79% to $22.47 on volume of 3,777,499 vs its 10-day price average of $22.39 and its 22-day price average of $21.68, and is  up 33.51% for the year. Revenue was $6145.6M in the last fiscal year compared to $5314.1M three years ago, Operating Income was $1313.7M in the last fiscal year compared to $1319.5M three years ago, EPS was $1.13 in the last fiscal year compared to $2.14 three years ago, and ROE was 5.43% in the last year compared to 9.53% three years ago. The stock is also trading with a Forward 12M P/E of 8.81.

Unattractive

Morgan Stanley (MS)

Morgan Stanley is our first Unattractive stock this 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 up 1.56% to $76.0 on volume of 7,565,105 vs its 10-day price average of $74.67 and its 22-day price average of $72.64, and is up 11.78% 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 13.25.

Top Short

Boeing Co (BA)

Boeing is a Top Short for the second week in a row- and this week, it’s especially deserved. After a Boeing 777 saw its engine explode over the weekend in mid-air, with debris falling from the sky, 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 up 4.31% to $217.47 on volume of 12,212,879 vs its 10-day price average of $212.72 and its 22-day price average of $207.16, and is up 7.28% 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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