Stocks trended broadly upward by Monday’s close after last week’s volatility related to concerns about the Federal Reserve’s desire to taper financial stimulus in 2021. Those worries amplified as the spreading Delta variant saw thousands of students quarantined, ICUs and ERs filled to capacity, and doctors staging a walk-out in Florida to protest depressed vaccination rates.
However, Monday saw the FDA grant Pfizer’s Covid-19 vaccine full approval. This ruling provided the necessary greenlight for various government, business, and educational institutions to mandate vaccine requirements before returning to life as usual.
Of particular note in the market, biotech and pharmaceutical stocks lead the charge. That said, Pfizer itself only saw modest gains of 2.4% compared to Moderna’s 7.5% and BioNTech’s 9.5%. Stocks linked to economic and social reopening also moved higher on the day.
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.
Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.
Northern Trust Corporation (NTRS)
Northern Trust Corporation closed up 1.5% Monday to $116.28, ending the day with just under 500,000 shares changing hands. Currently, the stock trades $2 over the 22-day price average and sits up nearly 25% for the year. Northern Trust Corporation is trading at 16.8x forward earnings.
Northern Trust Corporation is a financial services company that caters to various institutional and high-net-worth individuals. It’s one of the oldest banks in continuous operation and sits squarely among the largest banking institutions in the word by assets under management. The company provides a plethora of investment management, financial consulting, and private and business banking to target markets with over $75 million in assets.
Northern Trust Corporation made our trending list this week as the stock climbs once more following its late July Q2 2021 earnings call. The corporation announced quarterly earnings of $1.72 per share, or total revenues of $1.58 billion, with net income sliding in at $368 million. Management noted that results were positively impacted by an increase in wealth management fees, though escalating operating expenses dragged on profits.
Northern Trust Corporation’s revenue has grown around 4.3% over the last three fiscal years, nudging up from $5.975 billion to $5.976 billion. That said, operating income fell from $1.97 billion to $1.68 billion, while per-share earnings slipped from $6.64 to $5.46. Moreover, return on equity dropped by nearly a third to 10.6% from 15%.
At this time, Northern Trust Corporation is expected to see around 2.5% revenue growth in the next year. Our AI rates this financial institution above-average with Bs in Growth and Low Volatility Momentum and C in Technicals and Quality Value.
Best Buy Company, Inc (BBY)
Best Buy Company, Inc. slipped 0.4% to $112.16 per share Monday, closing out the day with 3.6 million trades on the docket. That said, Tuesday saw the company’s stock surge over 8.3%, or a change of $9.33, bringing it up almost 22% for the year. Currently, Best Buy trades over 14.4x forward earnings.
The sudden change in Best Buy’s fortunes followed its Q2 2022 earnings report. In the quarter, sales growth of 20% brought revenue to $11.85 billion, or $2.98 adjusted EPS. Total net income rose from $432 million to $734 million YOY. As a result of its outstanding performance, Best Buy raised its guidance outlook for the remainder of the fiscal year.
Management credited strong consumer spending, higher wages, and government stimulus for the company’s quarterly performance. Additionally, notes CEO Corie Barry via press release, “There has been a dramatic and structural increase in the need for technology” leading to consumers upgrading their devices and equipment to embrace habits formed in the last year.
Over the last three fiscal years, Best Buy’s revenue has surged 33.6%, growing from $42.9 billion to nearly $47.3 billion. Operating income saw even more impressive growth of 106.6% in the period, jumping from $1.96 billion to $2.59 billion. Meanwhile, per-share earnings leapt 88% from $5.20 to $6.84, with return on equity nicking up from 42.3% to 44.6%.
At this time, Q.ai’s artificial intelligence algorithms grade Best Buy B across the board in Technicals, Growth, Low Volatility Momentum, and Quality Value.
Pfizer, Inc (PFE)
Pfizer, Inc. popped 2.5% by Monday’s close, ending the session at $49.93 per share on the back of 88.65 million trades. The stock sits up 35.6% for the year and trades at 12x forward earnings.
Pfizer’s performance comes after the U.S. Food and Drug Administration granted its Covid-19 vaccine full approval. The move immediately paved the groundwork for educational institutions, companies, and governments to set vaccine mandates in place – including the Pentagon, which announced a plan to require vaccination for all members of the military.
A number of universities, including major institutions in Louisiana and Mississippi, had previously suggested they were waiting for full FDA approval to give vaccination mandates legal standing and are now expected to issue such requirements.
Over the last three fiscal years, Pfizer’s revenue jumped to $41.9 billion compared to $40.5 billion, while operating income leapt from $7.35 billion to $10.2 billion. Additionally, return on equity nearly doubled from 5.7% to 11%. That said, per-share earnings actually fell from $1.87 three years ago to $1.71 in the most recent fiscal year.
At this time, our AI rates Pfizer A in Low Volatility Momentum, C in Technicals and Growth, and D in Quality Value.
Moderna, Inc (MRNA)
Moderna, Inc. soared 7.6% by Monday’s close, ending the day at $411.89 with 15.8 million trades on the docket. The stock sits up over 294% for the year and trades at 9x forward earnings.
Moderna’s stock made our trending lists this week as it rode the tidal wave of the FDA’s full-approval announcement for Pfizer. The announcement gave investors hope that Moderna’s own mRNA-based vaccine would soon receive full approval. Such authorization not only paves the way for vaccine mandates and increased use but allows companies to sell directly to consumers (which is not currently allowed for drugs dispersed under emergency-use authorizations).
In the last three years, Moderna’s revenue has surged nearly 5,100% from $135 million to $803 million, while operating income slightly less than doubled from $413 million to $763 million. Meanwhile, return on equity nudged up from 35.7% to 40%. That said, per-share earnings dropped in the period from $4.95 to $1.96.
All told, Moderna’s forward 12-month revenue is expected to grow around 57%. Our AI rates this biotech investment C in Technicals and Quality Value, D in Low Volatility Momentum, and F in Growth.
Apple, Inc (AAPL)
Apple, Inc. nicked up 1% Monday to $149.71, closing out the session on the back of 60 million trades. The stock sits up 12.8% for the year and trades at 27.2x forward earnings.
Apple initially rose Monday after JPMorgan
But this week marks a more important hallmark for the company: the ten-year anniversary of Steve Jobs handing over the reins to Tim Cook. On the day that Tim Cook took charge, Apple lost $10 billion worth of market cap – but a decade later, Apple made history as the first company in the world to top $2 trillion market cap.
Now, investors continue to reward Cook’s innovation, leadership, and management style as he helms one of the most expensive companies in the world.
Over the last three fiscal years alone, Apple’s revenue has grown 30.7% from $265.6 billion to over $274.5 billion. Operating income fell in the period from $70.9 billion to $66.3 billion, though per-share earnings climbed from $2.98 to $3.28. Meanwhile, return on equity surged from 49.4% to 73.7%.
Currently, Apple’s 12-month revenue is expected to nick up around 2.1% – but for a company worth hundreds of billions in revenue, that’s still no small feat. As such, as our AI rates Apple A in Growth, B in Low Volatility Momentum and Quality Value, and D in Technicals.
Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.