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The Dow experienced its worst sell-off since October, despite strong earnings from Apple and Microsoft. The optimism around vaccine news diminished after Johnson & Johnson’s trial results fell short of investors’ expectations. And right now, all eyes are on Wall Street as investors work through the latest development in “GameStop mania.” This has been a challenging week for markets. Fortunately, we have our AI models to provide some guidance during this volatile time.
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Starting with stocks, travel companies Booking Holdings Inc (BKNG) and Tripadvisor Inc (TRIP) are rated Top Short for the next week. Booking Holdings was assigned Q-Factor Scores of D in Technicals, Growth, Low Volatility Momentum and Quality Value. Tripadvisor earned scores of D in Technicals, F in Growth, C in Low Volatility Momentum and F in Quality Value. Western Digital Corp (WDC), the only stock rated Top Short for next week and month, earned Q-Factor Scores of F in Technicals, D in Growth, F in Low Volatility Momentum and D in Quality Value.
Fedex Corp (FDX) has been rated Top Buy for the following week, earning factor scores of A in Technicals, C in Growth, B in Low Volatility Momentum and A in Quality Value. 2020 was a good year for FedEx. Its shares gained 71% for the year as the country and world’s dependence on online retailers and delivery services surged. This year, however, hasn’t looked nearly as strong for the stock. In the last few days, its price dropped. It’s only a matter of time before the stock rebounds, which is likely why our AI has given it a Top Buy rating.
There are three stocks rated Top Buy over the next 30 days: Boise Cascade Co (BCC), HMS Holdings Corp (HMSY) and Penske Automotive Group Inc (PAG). Boise Cascade, a lumber company, received Q-Factor Scores of B in Technicals, A in Growth, A in Low Volatility Momentum and A in Quality Value. HMS Holdings, which is in healthcare, earned scores of C in Technicals, B in Growth, A in Low Volatility Momentum and A in Quality Value. And transportation company Penske Automotive was assigned scores of D in Technicals, B in Growth, C in Low Volatility Momentum and A in Quality Value.
Over the next week, there are several ETFs that our AI has selected with a Top Buy rating.
The main takeaway is that our AI, for the most part, currently favors bonds. iShares iBoxx USD Investment Grade Corporate Bond (LQD) and iShares TIPS Bond (TIP) are both rated Top Buy for the next week. iShares iBoxx USD High Yield Corporate Bond (HYG), however, is rated Top Short. ProShares Ultra Bloomberg Crude Oil (UCO) is also rated Top Buy for this timeframe.
Closing out our ETF picks, both VanEck Vectors Gold Miners (GDX) and ARK Genomic Revolution (ARKG) have been rated Top Buys for the next 30 days. Communication Services Select Sector SPDR Fund (XLC), Invesco DWA Emerging Markets Momentum (PIE) and iShares S&P Small-Cap 600 Growth (IJT), a selection of funds from different sectors, hold common ground as the three ETFs with a Top Short rating for the next month.
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