The tech-heavy Nasdaq dropped 1% as tech stocks were under pressure. The Dow, on the other hand, is up 0.9% backed up by an increase in prices of Boeing, Nike, and Caterpillar. The executive orders by Trump looks to provide further unemployment relief, temporary tax deferral, and concessions on student loans, although legislatures from both sides are at odds with it due to the pressure it would put on individual states. Sanctions imposed by China over important American personalities, including a couple of high-ranking republican Congressmen, further escalated tensions between the two countries. Our deep learning algorithms have parsed through the data and used Artificial Intelligence (“AI”) to help you spot the Top Buys for today.
Centene Corp (CNC)
First on the list today is Centene Corp, a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. Our AI technology has identified factor scores of rated A in Technical, A in Growth, C in Momentum Volatility, and A in Quality Value for the stock that is up 3.88% for the year. As for the financials, revenue grew by 22.2% in the last fiscal year to $70791.0M, growing by 88.84% from $45810.0M three years ago. Operating Income grew by 48.13% to $2564.0M in the last fiscal year and by 159.25% from $1465.0M three years ago. EPS grew by 0.13% in the last year to $3.14 compared to a growth rate of 34.37% from $2.34 three years ago. ROE was 11.04% in the last year compared to 12.5% three years ago Forward 12M revenue is expected to grow by 3.04% over the next 12 months. The stock is trading with a Forward 12M P/E of 13.32, a reasonable valuation considering the financial performance of the company.
First Bank (FRBA)
The next company on our list of Top Buys is First Bank, a company that provides various banking products and services to individuals, businesses, and governmental entities. Our AI algorithms have identified factor scores of A in Growth, B in Momentum Volatility, and B in Quality Value for the stock that is down 39.89% this year. Revenue for the company grew by 2.87% to $58.38M in the last fiscal year, growing by 53.57% compared to $39.1M three years ago. Operating income grew at a rate of 0.88% in the last fiscal year to $23.2M, growing by 33.2% from $17.57M three years ago. EPS grew by 39.99% over the last three fiscal years from $0.48 to $0.69 in the last fiscal year. ROE was 5.55% three years ago and grew to 6.38% in the last year. Revenue is expected to grow by 2.24% over the next 12 months and the stock is currently trading at an extremely attractive valuation with a forward 12M P/E of 7.36.
McGrath RentCorp (MGRC)
McGrath RentCorp (MGRC) is the third company on the Top Buy list today, with factor scores of B in Technical, C in Growth, A in Momentum Volatility, and B in Quality Value. It operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, electronic test equipment and related accessories, and liquid and solid containment tanks and boxes. The stock is down 21.09% for the year. Digging into the financials, revenue grew by 3.1% in the last fiscal year to $570.23M and grew by 27.24% over the last three fiscal years. Three years ago, the revenue was $462.03M. Operating Income grew by 4.26% to $141.37M in the last fiscal year, growing by 52.93% from $96.38M three years ago. EPS grew by 5.06% in the last fiscal year to $3.93; lower compared to $6.34 three years ago. ROE was 16.06% last year, dropping from 33.52% three years ago but is still at a healthy level. Revenue is expected to grow by 0.78% in the next 12 months. The stock is trading with a forward 12M P/E of 15.72.
Simply Good Foods Company (SMPL)
Next on our list of Top Buys is Simply Good Foods Company, with factor scores of C in Technical, B in Growth, C in Momentum Volatility, and B in Quality Value. Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally. It markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The stock is down 12.49% for the year. The financials look good with Revenue growing by 40.15% over the fiscal year to $523.38M, compared to a growth rate of 85.16%from $396.17M three years ago. Operating Income grew by 42.43% over the last fiscal year to $83.95M in the last fiscal year, growing by 109.08% from $57.19M three years ago. EPS increased exponentially by 4638.8% from $0.01 three years ago to $0.56. ROE also improved to 6.3% in the last year compared to (0.71%) three years ago. Revenue is expected to grow by 14.78% over the next 12 months and the stock is trading with a Forward 12M P/E of 26.25.
Universal Electronics Inc (UEIC)
And finally, we have Universal Electronics Inc. Universal Electronics Inc designs, develops, and manufactures pre-programmed and universal control products, audio-video (AV) accessories, and intelligent wireless security and smart home products for consumer electronics, subscription broadcasting, home entertainment, automation, security, and hospitality and climate control markets. Our AI has given factor scores of B in Technical, A in Growth, B in Momentum Volatility, and A in Quality Value and the stock is down 15.96% for the year. As for the financials, revenue was $753.48M in the last fiscal year, higher compared to $695.79M three years ago. Operating Income grew by 107.39% in the last fiscal year to $15.62M, growing by 91.45% from $16.92M three years ago. EPS grew by 709.23% in the last fiscal year to $0.26, a significant improvement when compared to $(0.72) three years ago. ROE was at 1.35% in the last year, increasing from (3.87%) three years ago. Revenue is expected to grow by 5.21% over the next 12 months. The stock trades with a reasonable forward 12M P/E of 11.24.
