5 Stocks To Watch This Week

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Includes: AAPL, BAC, NFLX
by: Leigh Drogen

Summary

These 5 stocks are sending a strong buy signal according to their upward movement in the Forcerank consensus data.

Netflix and Bank of American are coming off strong earnings reports while the rest are poised to beat this earnings season.

Upward mobility in the Forcerank ranking is consistent with positive price movement.

Each week Forcerank runs a variety of games covering different industries. What we have found, is that the top three ranked companies in their respective games deliver the biggest positive price movement for that week. This week the winners feature popular names like Netflix (NFLX) and Apple (AAPL).

Netflix | Ecommerce: Netflix surprised investors Monday afternoon after reporting better than expected results on both the top and bottom line. Leading the way was its growing user base that added 370K memberships in the U.S. and 3.2 million international, handily beating the 2.3 million analysts had predicted. A majority of these gains can be attributed to the recent glut of original content including Stranger Things and the newest season of House of Cards. Its newest series, Luke Cage, was in such high demand at the time of its release that it crashed Netflix's servers. It appears as if increasing competition, particularly from Amazon (NASDAQ:AMZN), and un-grandfathering users into higher price points is having no material impact. Shares skyrocketed 20% following the print, far exceeding what Forcerank users were expecting when they placed the online streaming platform second in this week's e-commerce contest

Bank of America (BAC) | Financials: Bank of America is coming off a strong quarterly report of its own. The bank posted earnings of 41 cents on revenue of $21.86 billion, handily beating our consensus by 5 cents. Bank of America made its biggest gains in sales and trading revenue. The sector reported a 14% rise on the back of a 32% explosion in fixed income trading revenue. Many experts were expecting a strong report after JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citi (NYSE:C) all crushed expectations the Friday beforehand. Forcerankers saw this as an opportunity to propel BAC to the top spot this week and jump JPM in the process. A strong earnings season combined with an all but certain rate hike this year suggest a robust final quarter of the year for the financials sector.

NVidia (NVDA) | Semiconductors: NVidia leads the charge in this week's semiconductors contest that features multiples stocks that have soared in 2016. The sector has thrived this year thanks to the evolution of new technologies including data centers, gaming, automotive and Internet of Things. These are some of the sectors NVidia finds itself moving towards in an effort to expand business outside of GPUs. NVidia is still an industry leader in GPU's despite the noble efforts AMD has made to catch up. Analysts are optimistic that the chipmaker can continue its winning streak this earnings season which has historically driven the stock up. In the meantime, shareholders can expect to see the stock edge higher as OBV reaches a new peak.

Apple | Hardware: Since the debut of the iPhone 7, Apple has won back the hearts of many investors. It was the only hardware stock in the green last week and is consistently the highest ranked company by the Forcerank community. Shares are up nearly 20% in the past 3 months with a majority of those gains coming after the release. Investors can expect the stock to trend higher as OBV reached a new peak and after a bullish crossover in the MACD. While the early success of the iPhone 7 is encouraging, the company still must address the issues they are seeing in their other products. It was recently reported that Macbook shipments fell in the third quarter, which has become a common theme with Apple's other products.

Salesforce (CRM) | Large Enterprise Software: Salesforce leaped over 4 other companies to make its way to the top spot of this week's enterprise software contest. The move was driven by news that broke at the end of last week suggesting Salesforce was no longer in the running for Twitter (NYSE:TWTR). Management decided to heed the advice of its shareholders and withdraw its bid for the beleaguered social network. Shares quickly climbed on the news but have since flattened at the onset of the week. This is a company that has begun to struggle in the crowded cloud computing space. Names like Microsoft (NASDAQ:MSFT) and Amazon continue to make moves to push Salesforce out of contention. That doesn't mean investors should abandon ship just yet. There is still a massive gap $6 higher at $79 that hasn't been filled. Conventional wisdom suggests this must be closed if shares were to trend any lower.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.