After a brief rally, the market seems to be in a path of correction as the impact of COVID-19 continues to dampen investor spirits. Progress was announced yesterday in the quest for a vaccine by Pfizer PFE , but there was a massive surge in coronavirus cases that has dampened spirits – over 50,600 cases in one day in the US alone. Early in the morning, a better than expected job data pushed the markets higher on an expected economic recover. If you’re looking for a few companies to add to your portfolio, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology have identified the list of Top Buys for today with potential to trend higher.
Genuine Parts Co (GPC)
First on the list is Genuine Parts Co GPC , a company which distributes automotive replacement parts, industrial parts and materials in North America, Europe and Australasia. It caters to a variety of segments in the automotive sector ranging from electric vehicles to farm and marine equipment. The stock is down18.82% for the year providing an attractive entry point. Our AI systems have assigned factor scores of C in Technical, B in Growth, A in Momentum Volatility, and B in Quality Value to the company. Digging into the financials, revenue grew by 17.83% to $19392.3M in the last fiscal year from $16308.8M three years ago. Operating Income grew at a lower rate of 5.38% to $1122.7M in the last fiscal year, compared to $1019.6M three years ago. EPS was $9.08 in the last fiscal year, growing by 6.94%. EPS was relatively flat at $4.24 in the last fiscal year increasing marginally from $4.18 three years ago. ROE decreased from 18.5% three years ago to 17.3% in the last year. Forward 12M revenue is expected to grow by 0.96% and the stock is trading with a forward 12M P/E of 20.22.
Home Depot Inc (HD)
Next we have Home Depot Inc HD , the world’s largest home improvement specialty retailer. It operates nearly 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. The stock is up 12.97% on the year and is looking to add to those gains throughout the year. According to our AI systems, factor scores of B in Technical, B in Growth, A in Momentum Volatility, and B in Quality Value have been assigned. Revenue in the last fiscal year grew by 3.6% to $108203M, growing by 18.51% over the last three fiscal years from $94595M. Operating Income was $15777M in the last fiscal year compared to $13427M three years ago, growing by 15.6% in these three years. EPS grew by 3.49% in the last fiscal year to $9.73 compared to a rally of 56.12% from $6.45 three years ago. ROE was a 298.3% three years ago, something that shareholders should definitely consider. Revenue is expected to remain stagnant, registering a growth of 0.54% in the next 12 months, but the stock is trading with an attractive Forward 12M P/E of 23.22.
Monster Beverage Corp (MNST)
Monster Beverage Corp MNST is a company that develops, markets, sells, and distributes energy drink beverages, concentrating on the United States and internationally. It caters to three broad segments: Monster Energy Drinks, Strategic Brands, and Other. The stock is up 8.37% for the year, and our deep learning algorithms think that there could an increase in the share price, with factor scores of rated B in Technical, C in Growth, A in Momentum Volatility, and A in Quality Value. As far as financials are concerned, revenue grew by 2.76% in the last fiscal year to $4200.8M, and grew by 28.14% over the last three fiscal years from $3369M. Operating Income grew by 3.24% to $1414.2M in the last fiscal year and by 18.3% from $1234.2M three years ago. EPS was $2.04 in the last fiscal year, growing by 1.97% from the previous year and by an impressive 45.77% from $1.42 three years ago. ROE remains consistently high growing from 22.7% three years ago to 28.5% in the last year. Forward 12M revenue is expected to grow by 1.34% and the stock trades with forward 12M P/E of 32.24.
Neogen Corp (NEOG)
Neogen Corp NEOG is the next company our list of Top Buys. The company is primarily engaged in two segments: Food Safety and Animal Safety. In the food safety segment, the company provides diagnostic kits and products for food and animal feed. In the animal safety segment, the company manufactures veterinary equipment along with vaccines and other diagnostic products. Our AI systems have identified factor scores of C in Technical, C in Growth, A in Momentum Volatility, and B in Quality Value for the stock that has already rallied 17.99% for the year. Revenue grew by 1.14% in the last fiscal year to $414.2M, growing by 16.91% from $358.3M three years ago. Operating income grew by 2.16% to $68.1M in the last fiscal year compared to $64.9M three years ago. EPS registered a stronger momentum, growing by 30.23% from $0.86 three years ago to $1.15 in the last fiscal year. ROE remained stagnant at 10% in the last fiscal year and three years ago as well. Forward 12M revenue is expected to grow by 5.37%, and the stock trades with a forward 12M P/E of 65.43.
Sonoco Products Co (SON)
Our final Top Buy today is Sonoco Products Co, with factor scores from our AI systems of D in Technical, C in Growth, A in Momentum Volatility, and A in Quality Value. The company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia through its four segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The stock is down 14.8% for the year. As for the financials, Revenue grew by 5.74%, from $5036.7M three years ago to $5374.2M in the last fiscal year. Operating Income grew by 3.48% to $511.1M in the last fiscal year, growing by 26.08% from $419.5M three years ago. EPS grew by 2.43% to $2.88 in the last fiscal year but the growth rate is significantly higher at 69.54% when comparing it to the figure three years ago when it was $1.74. ROE also increased to 16% in the last year from 10.8% three years ago. The stock currently trades with a forward 12M P/E of 16.34.