AI Recommends These Energy🔋, Banking 💲 and Auto 🚗 Industry Trades

Despite a disappointing jobs report for November, markets are still pacing to end the week in the green. There’s been a mix of positive and negative news, most of which relates to COVID. The Department of Transportation is laser-focused on cementing its vaccine distribution plans as the UK moves forward with theirs. It’s a race against time as daily COVID cases continue to rise.

Earlier this week, Salesforce announced its acquisition of Slack Technologies (WORK), a stock our AI currently rates Top Short for the next week. Even before the news was official, investors who banked on the rumor to be true purchased the stock, driving up its price. At this time, our AI has assigned Q-Factor Scores of C in Technicals, D in Growth, D in Low Volatility Momentum and F in Quality Value.

Another stock rated Top Short for the next week is Roku Inc (ROKU). Its Q-Factor Scores are D in Technicals, D in Growth, F in Low Volatility Momentum and D in Quality Value. Roku is an on-again, off-again Top Short stock pick. Considering its share prices have doubled this year, it is possible that the stock is also overpriced.

Automobile companies Group 1 Automotive (GPI) and Autozone Inc (AZO) have each earned Top Buy ratings from our AI. Group 1 Automotive, a Top Buy for the next week, received scores of C in Technicals, B in Growth, B in Low Volatility Momentum and A in Quality Value. Autozone is a Top Buy for the next month and scored a D in Technicals, B in Growth, A in Low Volatility Momentum and B in Quality Value.

Looking at the ETFs our AI models have identified, energy and banks are heavily favored for the next week and month. On the energy side, Energy Select Sector SPDR Fund (XLE) and iShares Global Energy (IXC) are both Top Buys for the next week while Invesco DB Oil Fund (DBO) is a Top Buy for the next month. For banking, SPDR S&P Regional Banking (KRE) is a Top Buy for the next week while SPDR S&P Bank (KBE) is a Top Buy for the next month.

Funds that our AI is not as enthusiastic about include currencies and foreign investments. Invesco DB U.S. Dollar Index Bullish Fund (UUP) is a Top Short for the next week and Invesco CurrencyShares Japanese Yen Trust (FXY) is a Top Short for both the next week and month. iShares MSCI Japan (EWJ), a fund that exposes investors to mid-sized companies in Japan, has been rated Top Short for the next 30 days.

Some of our favorite options trades this week: 

Short Call Spread in Overstock.com Inc (OSTK) – Short trade in one of our top short ideas for December.  Great way to introduce downside exposure in a portfolio. 

Long Put Spread in SPDR S&P Retail ETF (XRT) – While SPDR S&P Retail ETF (XRT) is rated “Attractive” for the month, our models are also preaching prudence in taking profits after the recent rally.  Offers downside protection in the event that US Retail Sales disappoint during the Holiday Season. 

The Latest

Growth stocks continue to be a choice investment this year. While there’s optimism that 2021 will bring a shift for markets, our AI has identified the top growth stocks for December. 

To close out an otherwise wild year for tech, our AI and deep learning algorithms have identified 10 U.S. technology stocks rated Top Buy for this month. 

No matter the situation, dividend stocks are a great source of security for investors. These are the top dividend stocks rated Top Buy for December, according to our AI. 

Holiday season is here and big things could be on the way for consumer stocks. Our AI has selected the top 10 consumer stocks rated Top Buy 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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Due to the holiday schedule, we will not be sending the newsletter in the last two weeks of December. We will resume in the new year.