In the Monthly Picks series, we highlight 3 stocks that our stock-picking model ranked among the most undervalued for the next month. Our model currently considers the values of 18 different indicators to assess our selection of 99 US stocks. For each stock, we describe one indicator that was the most prominent. We also bring you the market sentiment and the latest news regarding these companies.
Among the most undervalued stocks for May are:
Wallgreens Boots Alliance, Inc. (WBA) ranked 13th out of 99 stocks – WBA’s dollar volume between the last 44 and 22 trading days has experienced the lowest change among all the evaluated stocks. Our model regards this as a good indication of future positive price action.
The Bank of New York Mellon Corporation (BK) ranked 16th out of 99 stocks – BK currently has one of the lowest market capitalizations (market cap) of all the measured stocks. Our model views stocks with a lower market cap as stocks with more potential to grow, thus giving them a better overall score. However, this does not apply to so-called “Big Tech” companies.
The company’s market capitalization represents its current value. It is calculated by multiplying the total number of outstanding shares by the current price of one share.
AbbVie Inc. (ABBV) ranked 8th out of 99 stocks – ABBV’s volume commodity channel index indicator (Volume CCI) shows the highest readings of all evaluated stocks. High values of Volume CCI means that the trading activity is soaring. Our model perceives this as a positive signal that the stock is undervalued.
Volume CCI is a technical indicator that compares an asset’s current volume to its historical volume.