Forbes - AI Models Favor These Growth ETFs 📈

Per usual, the news is split between good and bad news. While there have been strong earnings reported from the big bulge bracket banks like JPMorgan Chase, Citigroup, and Wells Fargo, unemployment has reached its lowest level since August. President-elect Joe Biden introduced his new stimulus plan, which will include extended unemployment benefits, but analysts cast doubt that it will have much of an impact on the current state of the market as it has likely been priced in already.

In terms of stocks to buy or short, our AI has not singled out a particular industry for the next week and month. Paypal Holdings Inc (PYPL), rated Top Buy for both the next week and month, scored a C in Technicals, A in Growth, C in Low Volatility Momentum and B in Quality Value. The only other stock with a Top Buy rating for the following week is Progressive Corp-Ohio (PGR), which received Q-Factor Scores of D in Technicals, C in Growth, A in Low Volatility Momentum and B in Quality Value. 

For the next month, Assurant Inc (AIZ), a company that specializes in risk management solutions, is rated Top Buy. Its Q-Factor Scores are C in Technicals, A in Growth, C in Low Volatility Momentum and A in Quality Value. Similar to Paypal, Cable One Inc (CABO) has frequently made the list of stocks rated Top Buy and has been rated as such for the next 30 days. At this time, its Q-Factor Scores are A in Technicals, B in Growth, C in Low Volatility Momentum and C in Quality Value. 

As for Top Shorts for the next month, Kimco Realty Corp (KIM) and Nordstrom Inc (JWN) top the list. Kimco Realty is rated D in Technicals, D in Growth, C in Low Volatility Momentum and D in Quality Value while Nordstrom has received Q-Factor Scores of C in Technicals, D in Growth, F in Low Volatility Momentum and D in Quality Value. Nordstrom’s stock has struggled significantly since the start of the COVID-19 pandemic, so it doesn’t come as a surprise that our AI still holds its same position on the stock.

There’s a broad mix of ETFs selected by our AI for the next week. With the exception of iShares Russell Top 200 Growth (IWY) and iShares S&P 500 Growth (IVW), which are both rated Top Buy, no two ETF is classified in the same category. The other ETFs highlighted for the following week include ARK Autonomous Technology % Robotics (ARKQ) and Consumer Discretionary Select Sector, both of which are also rated Top Buy. The only Top Short for next week is Invesco CurrencyShares Euro Trust (FXE). Overall, most ETFs highlighted are rated Top Buy. However, for the next month, iShares China Large-Cap (FXI) and iShares MSCI Hong-Kong (EWH) each hold Top Short ratings. 

Our favorite options trade this week: 

Short Put Spread in Polaris Inc (PII) – A bullish trade idea for a January 2021 Top Buy ahead of earnings at the end of the month.  Elevated levels of implied volatility help make this “short” of a short an interesting idea for those investors looking to add pure idiosyncratic risk into their portfolios.

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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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