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Top Rated Stocks To Watch This Week - Jan. 29, 2024

AInvestMonday, Jan 29, 2024 2:19 am ET
6min read

In the stock market where opportunities and risks coexist, stock selection is of paramount importance for every smart investor. Here, we have some very good investment opportunities that can assist investors. Combines fundamental analysis and quantitative screens to uncover promising companies that have the potential to become market leaders.

Additions

There are several new additions to the Top Rated Stocks this week.

1.Western Digital Corporation (WDC)

For the upcoming third quarter (Mar), Western Digital anticipates an EPS of $(0.10)-0.20 on a non-GAAP basis, surpassing the anticipated loss of $0.31. Revenue projections for Q3 are set between $3.20 and $3.40 billion, exceeding the analyst estimates of $3.15 billion. These figures reflect the companys optimism about its future performance.

David Goeckeler, Western Digital's CEO, expressed satisfaction with the results, attributing the companys success to strategic structural changes and an effective business strategy. These factors have led to notable outperformance across both flash and HDD (Hard Disk Drive) business segments.

Western Digital's recent performance and optimistic future guidance illustrate the companys resilience in the dynamic data storage market. As the industry anticipates growth in data generation and processing power requirements, Western Digital is positioned to capitalize on these trends despite the recent challenges in the semiconductor sector. Click here to review the article.

2.Valero Energy Corporation (VLO)

Valero Energy Corporation (NYSE: VLO), a leading independent refiner in the U.S., recently disclosed its Q4 and full-year 2023 financials, underscoring resilience amidst market fluctuations. The company operates an extensive network of refineries and ethanol plants and is a key player in Diamond Green Diesel.

Valero's CEO, Lane Riggs, commended the company's operational excellence contributing to its robust earnings, despite market headwinds. The firm's strategic ventures, especially in the renewable energy domain, reflect its commitment to sustainable growth and shareholder returns.

In summary, Valero Energy's Q4 2023 performance, marked by surpassing earnings expectations and strategic initiatives, illustrates its capability to thrive in a volatile market. The company's financial strength and focus on low-carbon solutions position it for sustained success and shareholder value enhancement in the evolving energy landscape. Click here to review the article.

3.ServiceNow (Now)

ServiceNow, a leading software company in workflow automation, announced Q4 results and provided an upward revision in its forecast for annual subscription revenue due to the growing demand for its generative artificial intelligence (AI) products. 

With businesses increasingly investing in workflow automation and improved communication, ServiceNow is well -positioned to benefit from this trend. The company's generative AI-integrated products, such as Now Assist, have garnered significant interest. 

In the fourth quarter, ServiceNow reported revenue of $2.44 billion, surpassing analysts' expectations of $2.40 The company's subscription revenue for the same period reached $2.37 billion, exceeding analysts' estimate of $2.32 billion. Compared to the corresponding period in the previous year, The company's revenue also experienced substantial growth, rising 26% to $2.44 billion.

In summary, ServiceNow has demonstrated strong financial performance, surpassing revenue and earnings expectations, driven by the increasing demand for its generative AI products and services. The company's ability to secure new customers, extend partnerships, and exceed its target contract value indicates a promising future. The integration of AI software into its core offerings has proven to be a significant growth driver, enabling ServiceNow to outperform the market.Click here to review the article.

4. CSX Corporation (CSX)

CSX Corporation, a prominent Class I railroad operator in the Eastern United States, recently unveiled its 2023 financial results, revealing the impacts of economic challenges on its operations. Despite a vast network spanning over 21,000 miles of track and handling a diverse array of commodities, CSX experienced a downturn in its financial performance compared to the previous year.

The company's 2023 revenue reached around $14.8 billion, a testament to its operational resilience in a fluctuating economic environment. However, CSX reported a decline in operating income to $5.56 billion, down 8% from the previous year, while net earnings fell to $3.72 billion, or $1.85 per share, from $4.17 billion, or $1.95 per share, in 2022. Joe Hinrichs, President and CEO of CSX, acknowledged these challenges but praised the ONE CSX team for maintaining reliable network performance.

CSX Corporation's 2023 earnings report paints a picture of a company that has successfully managed to maintain high service levels and network efficiency, despite facing a challenging economic climate. The dip in crucial financial indicators underscores the necessity for strategic navigation amidst economic uncertainties and industry-specific hurdles. Click here to review the article.

5.Travelers Companies, Inc. (TRV)

CNX Resources Corp, an influential player in the natural gas and midstream sector, recently unveiled its Q4 2023 earnings report, reflecting significant strides in production and financial fortitude. Operating predominantly in the Shale and Coalbed Methane segments, the company's report highlights its operational prowess and adept risk management in the competitive Appalachian Basin.

Production Volume Increase: CNX Resources saw a notable rise in its Shale Sales Volumes, escalating from 119.0 Bcf in Q4 2022 to 123.9 Bcf in Q4 2023. This increase underscores the company's robust operational capabilities and strategic positioning in the natural gas sector.

Effective Hedging Strategy: A critical aspect of CNX's financial success has been its hedging strategy. The company recorded both realized and unrealized gains on commodity derivative instruments totaling a significant $1.96 billion year-to-date. The strategy's effectiveness is further evidenced by a projected realized gain of $84.51 million for the fiscal year 2024.

CNX Resources Corp's Q4 2023 earnings report is a testament to its strategic growth, operational excellence, and effective risk management in a challenging energy market. By leveraging its strengths in production volume increase and hedging strategies, CNX continues to solidify its standing as a key industry player to watch. The company's successful navigation through market complexities showcases its potential for sustained growth and resilience. Click here to review the article.

Delletions

There are several deletions this week: DAL, BAC, LLY, SHOP, META.

Last Week's Best Performing Stocks

1.Advanced Micro Devices (AMD)

AMD has risen by 37.49% since being selected.

AMD shares have been triangling sideways since fall 2021, ranging roughly between $50 and $150 in a wide-swinging consolidation over two years in the making. Zooming in a bit, the stock is currently trading above rising major MA's. It is flirting up against key resistance in the $125 area. Support sits below in the area around $105-110 where we see the 50- and 200-day MA's.

In conclusion, AMD is a promising long-term investment for those who are willing to accept the risks involved. The company's growth in revenue, strategic positioning in AI, and focus on innovation make it an attractive option for investors who believe in its ability to secure its future in a rapidly evolving tech landscape. However, it is essential to monitor the company's performance closely and make informed decisions based on the latest financial data and market trends. 

In short, there are enormous risks in play here, but enormous upside potential is also within reach. It's a very interesting basket, but it's not a place to hold all your eggs. Click here to review the article.

2.Moderna (MRNA)

MRNA has risen by 18.37% since being selected.

Moderna is a biotechnology company specializing in the development of mRNA-based therapeutics and vaccines. They have gained recognition for their COVID-19 vaccine, which received Emergency Use Authorization (EUA) by various regulatory agencies worldwide.

Moderna (MRNA) and Merck (MRK) jointly announced positive results for their combination treatment, mRNA-4157 (V940), in combination with Keytruda (Pembrolizumab) for stage III/IV melanoma patients with a high risk of recurrence following complete resection. 

Following the news of positive clinical results, Moderna's stock exhibited a notable 11.7% uptick. This surge suggests that market participants view the news favorably and anticipate the potential for future growth.

MRNA sets up as an interesting opportunity for investors. The stock was a covid darling as it gained recognition for its covid vaccine in 2021. This drove its stock price to $497 in August of 2021. The stock has pulled back aggressively as worries around covid receded. The stock held its ground at the $71 level the past couple of months, suggesting sellers had left. This news has renewed interest in the name. MRNA could see some interest from traders given its breakout on the weekly chart and the positive new from today. Click here to review the article.

3.Costco (COST)

COST has risen by 15.02% since being selected.

Bulls argue that Costco maintains a proven formula for successfully translating its operations across borders and faces minimal direct competition abroad, implying a long runway of growth prospects. With unmatched scale and plentiful consumer data, Costco's pricing and value proposition remain superior relative to competing retailers and should be difficult to replicate. On the other hand, bears counter that as Costco reaches a point of maturity in its U.S. and Canadian markets, the firm's cost leverage may show signs of deterioration. Furthermore, Costco has lagged competing retailers when it comes to digital innovation and omnichannel fulfillment, which could cause customers to favor retailers such as Walmart and Amazon that have prioritized the digital customer experience in recent years.

COST shares have been out in front of the market overall this year, with the stock heading for a test of its all-time highs imminently as it approaches the $610-615 area, where it topped back in April 2022 as the bear market hit its stride. While COST shares are nearing overbought RSI and Bollinger Band levels, they aren't there yet, suggesting bears may need to absorb more pain to see through double-top bets in this trending leader. Click here to review the article.

Summary

Top Rated Stocks is savvy investor's proprietary quantitative system designed to uncover small, fast-growing companies that have the potential to become market leaders.

If you're new to this page, each Monday we publish an updated list of the growth stocks in the market. In-house focus list of the most compelling investment and trading opportunities in the eyes of savvy analytical team. Also incorporates periodic Special Situations reports on theme-based market opportunities.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.