Although last week marked the 11th time this year that the S&P 500 ended the week over 2% lower, and although markets experienced their worst weekly losses since the crash in March, markets have started November off with a much more optimistic sentiment. Investors seem relieved that election day finally came, and are cautiously optimistic that a winner will be declared sooner rather than later. The less the election drags on, the better it is for the markets. Additionally, yesterday’s ISM manufacturing report, combined with last week’s strong GDP report, the improving jobless claims, and improving fundamentals, show signs of a very real economic recovery. However, volatility is the new normal. One day there is a rally based on earnings and optimism, the next day there is a sharp sell off due to pessimism about COVID or economic stimulus. There is still a fear of the unknown as nobody knows what to expect with the election, and nobody knows what to expect as COVID surges. Sentiment changes on a weekly, and sometimes daily or hourly, basis. That is why investors should always look at investing in undervalued high quality companies. Our Artificial Intelligence ("AI") algorithms at Q.ai have identified some of these standout value stocks for the month. Our AI systems have picked out three Top Buys, three Attractive, and three Neutral. These quality value stocks may be a safer bet than more volatile trendy names, and are the top names for this month.
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Top Buys
From our list of Top Value stocks, we identified three Top Buys this month.
O'Reilly Automotive Inc (ORLY)
O'Reilly Automotive is our first Top Buy value stock for the month. O’Reilly Automotive is a staple in the automotive parts industry, and serves both professional service providers and do-it-yourself customers. Our AI systems rated O’Reilly Automotive C in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 1.11% to $441.46 on volume of 557,223 vs its 10-day price average of $452.19 and its 22-day price average of $455.67, and is up 0.9% for the year. Revenue grew by 10.92% in the last fiscal year and grew by 25.41% over the last three fiscal years, Operating Income grew by 21.11% in the last fiscal year and grew by 34.95% over the last three fiscal years, and EPS grew by 24.94% in the last fiscal year and grew by 76.31% over the last three fiscal years. Revenue was $10149.98M in the last fiscal year compared to $8977.73M three years ago, Operating Income was $1922.63M in the last fiscal year compared to $1725.4M three years ago, EPS was $17.88 in the last fiscal year compared to $12.67 three years ago, and ROE was 370.45% in the last year compared to 99.45% three years ago. The stock is also trading with a Forward 12M P/E of 19.68.
Microsoft Corp (MSFT)
Microsoft is our second Top Buy stock of the month. Despite falling after last week’s earnings announcement, the mega tech company’s numbers still crushed estimates, as they continue to innovate, grow, and adapt to these times. Our AI systems rated Microsoft B in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed down 0.07% to $202.33 on volume of 30,842,160 vs its 10-day price average of $209.61 and its 22-day price average of $212.43, and is up 25.97% for the year. Revenue grew by 2.87% in the last fiscal year and grew by 33.3% over the last three fiscal years, Operating Income grew by 6.02% in the last fiscal year and grew by 60.16% over the last three fiscal years, and EPS grew by 7.62% in the last fiscal year and grew by 191.03% over the last three fiscal years. Revenue was $143015.0M in the last fiscal year compared to $110360.0M three years ago, Operating Income was $52959.0M in the last fiscal year compared to $35058.0M three years ago, EPS was $5.76 in the last fiscal year compared to $2.13 three years ago, and ROE was 40.14% in the last year compared to 19.45% three years ago. Forward 12M Revenue is expected to grow by 2.52% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.02.
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Akamai Technologies Inc (AKAM)
Akamai Technologies is our final Top Buy value stock for this month. The digital intelligence and cloud computing provider has been rated C in Technicals, B in Growth, B in Low Volatility Momentum, and A in Quality Value by our AI systems. The stock closed up 0.73% to $95.81 on volume of 1,487,315 vs its 10-day price average of $103.0 and its 22-day price average of $107.33, and is up 9.32% for the year. Revenue grew by 7.96% in the last fiscal year and grew by 25.51% over the last three fiscal years=, Operating Income grew by 18.94% in the last fiscal year and grew by 73.77% over the last three fiscal years, and EPS grew by 17.61% in the last fiscal year and grew by 164.41% over the last three fiscal years. Revenue was $2893.62M in the last fiscal year compared to $2489.04M three years ago, Operating Income was $573.52M in the last fiscal year compared to $392.55M three years ago, EPS was $2.9 in the last fiscal year compared to $1.29 three years ago, and ROE was 13.96% in the last year compared to 6.76% three years ago. Forward 12M Revenue is expected to grow by 4.73% over the next 12 months, and the stock is trading with a Forward 12M P/E of 17.92.
Attractive
From our list of Top Value stocks, we identified three Attractive stocks this month.
Allstate Corp (ALL)
Insurance giant Allstate Corp is our first Attractive stock for the month. Our AI systems rated the company C in Technicals, B in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.42% to $90.9 on volume of 1,922,357 vs its 10-day price average of $90.09 and its 22-day price average of $91.5, andis down 19.43% for the year. Revenue grew by 11.18% over the last three fiscal years, Operating Income grew by 18.78% over the last three fiscal years, and EPS grew by 42.75% over the last three fiscal years. Revenue was $44675.0M in the last fiscal year compared to $39407.0M three years ago, Operating Income was $6557.0M in the last fiscal year comparedto $5085.0M three years ago, EPS was $14.03 in the last fiscal year compared to $9.35 three years ago, and ROE was 20.49% in the last year compared to 16.48% three years ago. Forward 12M Revenue is expected to grow by 6.19% over the next 12 months. Trading with a Forward 12M P/E of 8.54.
CVS Health Corp (CVS)
Our third Attractive value stock for this month is CVS Health Corp. CVS Health is a multifaceted healthcare company which is the parent company of retail chain CVS Pharmacy, and health insurer Aetna. Investors will also be closely monitoring CVS Health this week as they are set to announce their earnings from the latest quarter. Our AI systems rated CVS Health C in Technicals, B in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 3.55% to $58.08 on volume of 9,437,916 vs its 10-day price average of $58.28 and its 22-day price average of $58.73, and is down 21.68% for the year. Revenue grew by 2.82% in the last fiscal year and grew by 42.33% over the last three fiscal years, Operating Income grew by 17.45% in the last fiscal year and grew by 42.07% over the last three fiscal years, and EPS grew by 23.87% in the last fiscal year. Revenue was $255765.0M in the last fiscal year compared to $184765.0M three years ago, Operating Income was $11818.0M in the last fiscal year compared to $9770.0M three years ago, EPS was $5.08 in the last fiscal year compared to $6.44 three years ago, and ROE was 10.81% in the last year compared to 17.79% three years ago. Forward 12M Revenue is expected to grow by 1.87% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.02.
Charles River Labs Intl Inc (CRL)
Pharmaceutical and clinical laboratory company Charles River Labs is our third Attractive stock for the month. Our AI systems rated the company C in Technicals, C in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.25% to $232.82 on volume of 474,751 vs its 10-day price average of $230.03 and its 22-day price average of $234.65, and is up 51.29% for the year. Revenue grew by 7.74% in the last fiscal year and grew by 52.03% over the last three fiscal years, Operating Income grew by 17.39% in the last fiscal year and grew by 37.66% over the last three fiscal years, and EPS grew by 18.29% in the last fiscal year and grew by 136.37% over the last three fiscal years. Revenue was $2621.23M in the last fiscal year compared to $1857.6M three years ago, Operating Income was $367.1M in the last fiscal year compared to $313.06M three years ago, EPS was $5.07 in the last fiscal year compared to $2.54 three years ago, and ROE was 16.91% in the last year compared to 13.1% three years ago. Forward 12M Revenue is expected to grow by 7.09% over the next 12 months, and the stock is trading with a Forward 12M P/E of 27.48.
Neutral
From our list of Top Value stocks, we identified three Neutral stocks this month.
Apollo Global Mgmt (APO)
Our first Neutral stock is Apollo Global Mgmt. The alternative investment fund, which is headed by Philadelphia 76ers’ Managing Partner Josh Harris, focuses on investments across credit, private equity, and real assets. Our AI systems rated Apollo F in Technical, C in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 4.23% to $38.42 on volume of 1,304,572 vs its 10-day price average of $39.56 and its 22-day price average of $42.25, and is down 19.39% for the year. Revenue was $2833.48M in the last fiscal year compared to $2718.93M three years ago, Operating Income was $1283.65M in the last fiscal year compared to $1421.67M three years ago, EPS was $3.71 in the last fiscal year compared to $3.1 three years ago, and ROE was 55.99% in the last year compared to 60.59% three years ago. Forward 12M Revenue is expected to grow by 9.8% over the next 12 months, and the stock is trading with a Forward 12M P/E of 16.51.
Metlife Inc (MET)
Metlife is back on our list as a Neutral rated stock for the second week in a row. Metlife is one of the largest providers of insurance, annuities, and employee benefit programs in the world, with 90 million customers in over 60 countries. Our AI systems rated Metlife C in Technicals, D in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.25% to $38.7 on volume of 5,636,119 vs its 10-day price average of $38.76 and its 22-day price average of $38.94, and is down 25.03% for the year. Revenue grew by 9.5% over the last three fiscal years, Operating Income grew by 21.95% in the last fiscal year and grew by 98.02% over the last three fiscal years, and EPS grew by 27.24% in the last fiscal year and grew by 113.26% over the last three fiscal years. Revenue was $69620.0M in the last fiscal year compared to $62308.0M three years ago, Operating Income was $7856.0M in the last fiscal year compared to $4838.0M three years ago, EPS was $6.06 in the last fiscal year compared to $3.62 three years ago, and ROE was 9.9% in the last year compared to 7.91% three years ago. Forward 12M Revenue is expected to grow by 6.57% over the next 12 months, and the stock is trading with a Forward 12M P/E of 6.38.
United Rentals Inc (URI)
United Rentals is our final Neutral rated value stock for the month. United Rentals is the world's largest equipment rental company, and owns the largest rental fleet in the world. United Rentals also owns about 13% of the market share in North America. Our AI systems rated United Rentals ratings of C in Technicals, D in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed up 8.07% to $192.67 on volume of 1,327,420 vs its 10-day price average of $182.17 and its 22-day price average of $188.36, and is up 14.24% for the year. Revenue grew by 31.11% over the last three fiscal years, while Operating Income grew by 17.23% over the last three fiscal years. Revenue was $9351.0M in the last fiscal year compared to $6641.0M three years ago, Operating Income was $2246.0M in the last fiscal year compared to $1689.0M three years ago, EPS was $15.11 in the last fiscal year compared to $15.73 three years ago, and ROE was 32.46% in the last year compared to 56.63% three years ago. Forward 12M Revenue is expected to grow by 0.53% over the next 12 months, and the stock is trading with a Forward 12M P/E of 11.9.
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