TL;DR
- Apple is launching new products, and investors interested in tapping into innovative companies should keep eyes on changes in tech
- Guilty pleasure stocks are looking enticing, with cannabis stocks ticking up
- Top weekly and monthly trades
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Major events that could affect your portfolio
As per usual lately, the tech sector is keeping investors on their toes. This week, it’s ablaze with new products and ever-evolving AI.
Investors are waiting to see what Apple will reveal at its much-anticipated Wanderlust event on September 12. Invites for the launch event circulated on social media this week, teasing new products.
We know for a fact that the new iPhone 15 and Apple Watch Series 9 are launching at the event. Wall Street seems to often react well to Apple announcements, and the stock price reflected that this week. Only time will tell how the markets react to the aftermath of the event.
Other tech companies are also making headlines this week for innovating with artificial intelligence. Take, for example, General Motors, which is teaming up with Google, using the AI chatbot for its in-car virtual assistant service. Alibaba also recently announced two updated AI models, Qwen-VL and Qwen-VL-Chat, putting China in the AI race.
This week’s top theme from Q.ai
Pick your vice. Companies that fall into the guilty pleasures categories—i.e. booze, cannabis and more—are in the news this week.
While whiskey producer Brown-Forman, which makes whiskeys like Jack Daniels, Woodford Reserve and Gentleman Jack, had a rough quarter, some sales were still up. The company reported earnings of 48 cents per share, falling short of analysts’ 53 cents estimate, while net sales for its whiskey products decreased 1% and overall net sales fell 8%. Pre-mixed cans and tequila sales were up, however, suggesting that people may be changing up their bar carts.
Meanwhile, cannabis sales have also been up this week. The market moves come on the heels of the U.S. Department of Health and Human Services making an impactful recommendation in a letter to the Drug Enforcement Administration. The department suggests that marijuana be reclassified as a Schedule III drug, instead of its current status of Schedule I drug (alongside drugs like heroin and LSD) under the Controlled Substances Act.
Most of the country has already legalized marijuana for recreational use, but the reclassification of the drug could create a ripple effect in the markets. We’re already seeing cannabis stocks tick up into the green this week, such as the MJ PurePlay 100 Index, which tracks stocks in the sector, cannabis cultivation and production company Goodness Growth Holdings and Columbia Care Inc, a manufacturer and provider of medical and adult use cannabis.
Investors interested in getting in on these highs (and navigating the liquor lows) should consider diversifying their exposure to top U.S. companies in alcohol and cannabis.
Top trade ideas
Here are some of the best ideas our AI systems are recommending for the next week and month.
Autozone Inc. (AZO) – The American retailer of aftermarket automotive parts and accessories is our Top Buy for next week with our AI giving them an A in our Technical, Momentum Volatility and Quality Value factors. It saw 8.2% total revenue growth over the last 12 months.
Virgin Galactic Holdings, Inc. (SPCE) – The spaceflight company is our Top Short for next week with our AI giving it an F rating in our Technical and Quality Value factors.
Brookdale Senior Living, Inc. (BKD) – The company, which owns and operates retirement homes across the United States is a Top Buy for next month with an A rating in our AI’s Technical and Growth factors. The company saw 7.9% total revenue growth over the last year.
Freshpet Inc. (FRPT) – The American pet food company a Top Short for next month with our AI giving them an F rating in our Quality Value factor.
Our AI’s Top ETF trades for the next month are to invest in tech and robotics and to short U.S. small- to mid-cap companies and the largest U.S. equities. ARK Autonomous Technology & Robotics ETF (ARKQ), SPDR S&P Internet ETF (XWEB) and Vanguard Information Technology Index Fund ETF (VGT) are our Top Buys. Top Shorts are Invesco FTSE RAFI US 1500 Small Mid ETF (PRFZ) and Invesco FTSE RAFI US 1000 ETF (PRF).
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