“Sell in May and Go Away” didn’t pan out this year, with a strong showing for equity indices in the month. The S&P 500 gained 4.5%, the Dow gained 4.2%, and the Nasdaq surged 6.7% for the month and momentum is poised to the upside here. Our deep learning algorithms paired with our Artificial Intelligence (“AI”) technology has identified the top trending stocks to start your June off right.
There are two “Top Buy” rated stocks to go long on in your portfolio to start the month off in Verizon Communications Inc and MSCI Inc. The two stocks have been on different trajectories in the last year, with Verizon gaining only 5.28% and MSCI gaining 49%, as seen in the chart below. Year-to-date the trend is similar with Verizon down 4.56% and MSCI up 27.9%. Of course, they operate in entirely different industries, with the former being primarily a wireless business and the latter a leader in benchmark indexes and portfolio risk analytics. In this case, volatility has led to much higher total returns, but both are favorable according to our AI systems.
Moving down the ratings to “Attractive” rated companies, we have three to cover this week in Intel Corporation, Netflix, Inc., and Facebook, Inc. all rated as such. For the week, they had returns of +1.53%, -3.79%, and -2.72%, respectively. All three companies have had impressive 1-year returns as seen below, but year-to-date they have done +6.25%, +29.72%, and +9.67%. Given what has happened to the global economy, these three stocks have been more immune than others, thanks to their leadership in the technology industry. Who said you couldn’t hide out in tech in a recession?
For the trending stocks that are rated “Neutral” by our deep learning algorithms, we have three to cover. Advanced Micro Devices, Inc., Costco Wholesale Corporation, and Pfizer, Inc. all made this list. The companies have had year-to-date returns of 17.31%, 5.41%, and a loss of 0.52%, respectively, and the one-year returns are widely dispersed, as shown below. Advanced Micro Devices, Inc. had a poor week in an otherwise strong year, losing 1.56%, while the other two companies gained 2.15% and 2.5%. All three could go either way from here, according to our AI system.
And finally, our “Top Short” this week is the same as last week in The Boeing Company. While it closed up 4.93% on the week on heavy volume of 33.65 million shares, the company has been obliterated year-to-date amid international travel being grounded, losing 54.96%. The recent bounce of 38% from its low on March 23 appears to be an opportune time to short the stock, especially after the strong week mentioned above. Not only will air travel take years to recover, but The Boeing Company has the large specific issues with its 737 MAX 8 aircraft which had two fatal crashes last year. That will not go away anytime soon, and the stock appears poised to head lower according to our AI system.