After last week’s up and down trading sessions, our AI Sentiment models continue to favor defensive … [+]
After last week’s volatile trading session, with the S&P 500 closing down little more than 2%, we ask our AI Sentiment models to help us map the week ahead to find the best stocks to own. In the current market environment, with fundamentals offering little insight into price discovery for stocks, we think it is prudent to consider the impact of both abnormal trending news for stocks and the sentiment of this “out of the ordinary” news to make inferences about which stocks are primed for a breakout.
How did we do last week?
Our two favorite stocks from our post last Monday morning were J. M. Smucker and Hershey Co. Both J. M. Smucker +9.03% and Hershey CO +6.83% structurally outperformed the S&P 500 and the benchmark large-cap Consumer Staples index (S&P 500 Consumer Staples).
Our Favorites from our AI Sentiment Models
Walmart continues to outperform the S&P 500, +9.03% this week vs -2.02% for the benchmark S&P 500. While our models are becoming biased to low beta stocks, it is worthwhile to note that Walmart also outperformed the benchmark S&P 500 Consumer Staples by nearly 5.50% this week. Walmart offers investors attractive exposure to a leading retailer in the fight against the current Coronavirus Epidemic with a healthy dividend yield slightly under 2%. Walmart reports earnings later this month.
Conagra Brands is a new name on this list, finishing last week’s trading +11.78%, crushing both the S&P 500 and its the S&P 500 Consumer Staples indices. Conagra Brands distributes brands like Hunt’s Ketch, Duncan Hines, Health Choice, among others. These will continue to be staple brands for all of us as we continue to grapple with social distancing. Conagra Brands boasts a dividend yield north of 2.7% and is expected to report earnings in May.
Johnson & Johnson is another low beta stock which continues to be a favorite of our AI sentiment models. In the case of Johnson & Johnson, a leading healthcare products company leading the push for a vaccine for COVID-19, investors are getting exposure to both a dividend yield play as well as direct exposure to the fight to stop the Coronavirus Epidemic. Johnson & Johnson offers a dividend yield slightly below 3% and is expected to report earnings over the next two weeks.
Top Stocks Ideas from Our AI Sentiment Models
- Conagra Brands CAG closed up 11.78% for the week to $31.21. The stock is down 8.26% for the year.
- Johnson & Johnson JNJ closed up 8.94% for the week to $134.17. The stock is down 7.42% for the year.
- Verizon Communications VZ closed up 3.66% for the week to $54.70. The stock is down 9.97% for the year.
- Freeport-McMoRan FCX closed up 1.94% for the week to $6.32. The stock is down 51.64% for the year.
- CenturyLink CTL closed up 0.55% for the week to $9.11. The stock is down 31.04% for the year.
- Hess Corp HES closed down 1.50% for the week to $33.52. The stock is down 49.47% for the year.
- Walmart WMT closed up 9.03% for the week to $119.48. The stock is up 0.99% for the year.
- Cognizant Technology Solutions Corp (CTSH) closed down 6.99% for the week to $43.4. The stock is down 29.8% for the year.
- Copart CPRT closed down 12.09% for the week to $61.8. The stock is down 32.04% for the year.
- Amgen AMGN closed up 3.60% for the week to $205.41. The stock is down 14.18% for the year.