Forbes - AI Model Favors These Big Tech Stocks

Things kicked off this week similarly to last – with more vaccine news. Moderna announced that its vaccine is also 94.5% effective. Pfizer’s vaccine has been found to be 95% effective and is seeking FDA approval for emergency use. At this stage, it is possible that some front-line healthcare workers will have access to a vaccine before the end of the year. First-time unemployment has increased by 31,000 in comparison to the previous week, which could be an indication of slowed economic growth.

Next week’s stock picks are an exciting bunch, especially for investors who are Big Tech enthusiasts. Apple Inc (AAPL), Amazon.Com Inc (AMZN), Facebook Inc (FB) and Microsoft Corp (MSFT) all have a Top Buy rating. Apple earned a B in Technicals, B in Growth, A in Low Volatility Momentum and Quality Value; Amazon received a B in Technicals, A in Growth, A in Low Volatility Momentum and C in Quality Value; Facebook earned scores of C in Technicals, B in Growth, A in Low Volatility Momentum and B in Quality Value; Microsoft holds scores of B in Technicals, B in Growth, A in Low Volatility Momentum and A in Quality Value. 

Hewlett-Packard Inc (HPQ), another well-known tech company, is rated Top Buy for the next month. Its scores are C in Technicals, C in Growth, B in Low Volatility Momentum and A in Quality Value.

Recovery stocks are notably among the stocks rated Top Short. American Airlines Group Inc (AAL), a Top Short for the next week and month, earned Q-Factor scores of F in Technicals, F in Growth, C in Low Volatility Momentum and F in Quality Value. Avis Budget Group Inc (CAR) and Las Vegas Sands Corp (LVS) are Top Shorts for the next month. 

Avis earned scores of C in Technicals, F in Growth, D in Low Volatility Momentum and D in Quality Value. Las Vegas Sands scored C Technicals, F in Growth, D in Low Volatility Momentum and F in Quality Value. Earlier in the week, we did see a rotation from tech stocks to recovery stocks, as investors shifted their focus away from tech. However, with new daily cases rising each day, the COVID pandemic has made it unclear when people will be able to safely resume travel.

Our AI’s top ETF picks include United States Brent Oil Fund (BNO) anc ProShares VIX Short-Term Futures (VIXY), funds that were highlighted last week and holds the same Top Buy rating for the same timeframe. The remaining ETFs are new to the list and all unique to one another. The Invesco Russell 1000 Dynamic Multifactor (OMFL), Vanguard Small-Cap Value (VBR) and Invesco S&P 500 High Dividend Low Volatility (SPHD) are rated Top Buy for the next week while the iShares MorningStar Large-Cap (JKD) and iShares S&P 100 (OEF) are rated Top Short. Next month, Vanguard Utilities (VPU) and iShares U.S. Utilities (IDU), the only two from the same sector, are rated Top Short.

Some of our favorite options trades this week: 

Long Put Collar in iShares MSCI Emerging Markets ETF (EEM) – Leveraged bearish trade on Emerging Markets Stocks.  Great way to introduce a hedge against a drop in EM-exposed US stocks in a portfolio without being forced to materially shift the asset allocation within a portfolio.

Long Put Spread in iShares 20+ Year Treasury Bond ETF (TLT) – Leveraged bearish trade on long-term government bonds.  Great way to introduce a short duration risk allocation into a multi-asset portfolio. 

The Latest

Investing in high-quality companies that offer consumer goods and services is one the best ways investors can keep their money safe as COVID cases surge. These are the top consumer stocks for November. 

Our AI has gone through the top Dividend ETFs based on its 90-day, 30-day, and 1-week fund flows and provided ratings for this month.

Update: The beta version of the Forbes AI Investor investment discovery platform is now live! It’s a simple, easy to use, jargon free platform that helps users discover new investments using AI. Our goal is for investors to kickstart their research with Forbes AI Investor so that they spend less time finding ideas and more time on optimizing their decisions. The platform takes guesswork out of investing and provides AI driven high conviction stocks and ETFs ideas. We opened up the platform to the first 100 users. Investors who are part of our investing slack channel will get priority access.

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