Summer’s ending! The kids are returning to school! And yet again, Q.ai is releasing a batch of Top Buy stocks to start the new month.
Our artificial intelligence algorithms carefully curated a list of Top stocks to kick off September right, including Top Tech, Top Consumer, Top Growth, and Top Quality Value. Whatever your investing vice or favorite sector, we have a little something for everyone, courtesy of Forbes AI Investor.
Q.ai runs daily factor models to get the most up-to-date reading on stocks and ETFs. Our deep-learning algorithms use Artificial Intelligence (AI) technology to provide an in-depth, intelligence-based look at a company – so you don’t have to do the digging yourself.
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Top Tech Pick: Apple, Inc (AAPL)
Apple, Inc. slipped 0.8% Tuesday to $151.83 per share, closing out the day with well over 86.3 million trades on the docket. The stock is trading up $3 from its 22-day price average and sits up over 18% for the year. At this time, this Top Buy stock trades at 27.7x forward earnings.
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Throughout the pandemic, Apple has been a clear winner thanks in no small part to its full tech suite that made working from home and contactless payments methods possible – both crucial public health measures during a viral outbreak. Revenue surged 27% in the company’s last fiscal year, while its most recent quarter – ending June 26 – saw a 36% increase YOY.
The stock continues to surge even now as the company plans to allow users to add their state-issued IDs to their Apple Wallets. States like Connecticut, Oklahoma, Utah, and Georgia, among others, have all said they will adopt the feature when it rolls out. At this time, Apple has not specified a timeline for this latest upgrade.
Apple’s revenue surged 30.7% from $265.6 billion to over $274.5 billion in the last three fiscal years. Meanwhile, EPS leapt from $2.98 to $3.28 as return on equity jumped from 49.4% to 73.7%. However, operating income dropped from $70.9 billion to $66.3 billion in the same period.
Currently, Apple is expected to see 2.1% revenue growth in the next year. Our AI rates this Top Tech stock A in Growth, B in Low Volatility Momentum and Quality Value, and C in Technicals.
Top Growth Pick: Micron Technology, Inc (MU)
Micron Technology, Inc. nipped up 0.7% by Tuesday’s close on the back of 14.7 million trades. At $73.72 per share, the stock sits up $1.50 over its 10-day price average, though down 0.5% for the year. Currently, this Neutral-rated Top pick trades at 7x forward earnings.
Micron Technology is an American computer data storage and memory tech producer, including dynamic random-access memory (DRAM), flash memory, and USB drives. The firm operates under the Ballistix and Crucial brands and has partnered with Intel to create IM Flash Technologies, which designs and produces NAND flash memory.
In other words, it’s a tech-heavy company operating in a tech-heavy world, which poised it perfectly to capitalize on the new normal instituted over the last year. However, the stock has, by and large, underwhelmed the market this year thanks to Wall Street analyst downgrades, as well as circulating doubts about the memory market’s health. But as PC demand continues to perform and DRAM demand remaining strong, it looks like Micron may be due a comeback.
Over the last three fiscal years, Micron Technology’s revenue slipped from $30.4 billion to $21.4 billion, with operating income plummeting to $3 billion compared to $14.9 billion. Meanwhile, per-share earnings plunged from $11.51 to $2.37, and ROE dropped from 53.6% to 7.1%.
Currently, Micron Technology is expected to see around 26.1% revenue growth in the next 12 months. Our AI rates this Top Growth pick A in Growth, B in Low Volatility Momentum, and D in Technicals and Quality Value.
Top Consumer Pick: Five Below, Inc (FIVE)
Five Below, Inc. slipped 0.8% Tuesday to $212.81 per share before closing up 1.5% on Wednesday. The stock is trending more than $6 below its 10-day price average. Currently, this Top Buy pick sits up 23.5% for the year and trades at 44.9x forward earnings.
Five Below is a chain of discount stores that sells products aimed primarily at teens and tweens for less than $5. The retailer operates over 1,000 storefronts in the 39 states from its Philadelphia headquarters. By and large, the stock has outperformed during the pandemic alongside its retail compatriots. The company netted nearly $2 billion in FY2020 sales with an EPS of $2.20.
However, with its most recently Q2 2021 earnings report missing analyst estimates on revenue – though improving YOY overall – the stock has taken a dip, leaving a potential opening for investors to nab an opportunity while the getting’s cheap (or at least cheaper).
Five Below’s revenue grew around 65% from $1.6 billion to $1.96 billion in the last three fiscal years. However, operating income dropped from $187 million to $155 million in the period, while EPS slipped from $2.66 to $2.20, and ROE nearly halved to just 15%.
Currently, Five Below’s forward 12-month revenue is expected to see growth around 3.25%. Our AI rates this Top Consumer stock A in Growth and Low Volatility Momentum and B in Technicals and Quality Value.
Top Quality Value Pick: Gilead Sciences, Inc (GILD)
Gilead Sciences, Inc. popped up 1% Tuesday to $72.78 per share, trading 7.3 million times on the day to a price $2 over the 22-day average. This Top Quality stock is rated Attractive by our AI and currently trades up 23.75% YTD at 10.9x forward earnings.
Gilead Sciences is a research and biopharmaceutical company that primarily works with antiviral drugs targeting HIV, hepatitis B and C, and influenza. While the company hasn’t positioned itself as a leader in the Covid-19 vaccine market, it has recently partnered with Gritstone Bio to use the underlying mRNA tech to develop a new kind of HIV vaccine.
However, with rival biotech company Moderna also racing to use its newfound mRNA prowess to treat – or potentially cure – HIV, Gilead may have its work cut out for it. And though Gilead has also begun a push away from its HIV dominance into cancer cell therapies, Moderna is also targeting cancer using a variety of novel treatment options.
Over the last few years, Gilead’s revenue leapt over 20% to $24.7 billion compared to $22.1 billion three years prior. Operating income saw 34% growth in the same period, climbing from $9.3 billion to $11.2 billion. However, EPS plunged from $4.17 to just ten cents, with return on equity coming in at just 0.4% compared to 26% three years prior.
Currently, our AI grades this Top Quality Value pick A in Growth and Quality Value and C in Technicals and Low Volatility Momentum.
Top Quality Value Pick: General Dynamics Corporation (GD)
General Dynamics Corporation closed up at $200.31 per share Tuesday, a change of 0.6%. The stock saw just over 786,500 trades on the day to a price $2 over both its 10- and 22-day averages. General Dynamics trades up 40% for the year at 16.5x forward earnings. For September, our AI rates this Top Quality Value pick as an Attractive proposition.
General Dynamics is an aerospace and defense corporation headquartered in Virginia. The company secured its place as the third-largest defense contractor in the United States in 2020 and the third-largest globally by sales. The company’s bottom line – and its stock price – rose steadily throughout the pandemic thanks to awards from the U.S. Navy, Army, and Centers for Medicare and Medicaid Services, as well as multiple classified customers.
Over the last three fiscal years, General Dynamics’ revenue nicked up 6.4% from $36.2 billion to $37.9 billion. Meanwhile, operating income slid from $4.4 billion to $4.2 billion as per-share earnings slipped 18 cents to $11 even. At the same time, return on equity dropped from 29% to 21.4%.
At this time, General Dynamics is expected to see around 1.8% revenue growth in the coming year. Our AI rates this Top Quality Value pick A in Quality Value and Low Volatility Momentum and C in Technicals and Growth.
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