Artificial Intelligence Picks These Stocks to Survive Market Downturn

Being an IT junkie as well as someone who dabbles in the market does not make me an SME or subject matter expert. That however doesn’t stop my coworkers asking for my opinion on market related topics from Tesla to SalesForce and more. The latest craze out now is ChatGPT and how this AI is revolutionizing education, the workplace, and more. As someone who is always trying to find an edge in the market I tested out how this AI could be useful in investing. Truthfully, it was hit or miss trying to get the desired output BUT a recent article posted yesterday March 25th showed me what I was doing wrong. Now while this firm did not necessarily use ChatGPT specifically, the AI that they did use came up with 5 stocks that has been outperforming the S&P 500 consistently. Here are those stocks.

Welcome to Money Talk Sundayz. I’m your host Stevie Bee. Hit that like, share, and subscribe button. Make sure you ding that notification bell to get alerted to new drops. Last weekend I did not drop an episode. I was on vacation. I was on a cruise with my family, and we had a good time. Can’t say it was restful since it was a very active vacay, but it was a welcome disconnect from the day to day drudgery of life.

Anyway if you’ve made it this far, you’re curious to hear what stocks were recommended by this AI to weather further market downside. So without further ado… Stock #1 is:

Realty Income

Ticket symbol O, Realty Income has a market cap of $41 billion. Realty is one of the most consistent dividend payers in the markets. It is currently down more than 5.5% this quarter and is facing it’s fourth quarterly decline. Back when Covid was surging around the globe causing mass shutdowns, many investors fretted over physical retail locations and office spaces. This led to a monumental selloff in the REIT space and Realty Income was caught up in the wave. Even after a bounce back of the markets, O has not achieved new all-time highs.

Despite the relatively poor price action over the past few months and few years, Realty Income stock holds a number of positives.

First, the company pays a monthly dividend and has an annual yield of 5.1%. It has also raised its payout in 102 consecutive quarters — or more than 25 years straight. That alone makes this stock attractive for certain income-oriented investors.

Unfortunately, the FED is still raising interest rates causing investors to cash out. If this pattern continues, be ready to catch the dip at around $55-56 range. Why? This was a big support level for several quarters after the initial covid-19 selloff. It’s also the 50% retracement from the 2022 high down to the 2020 low. Lastly, this zone contains the 2022 low.

So if we get a dip down to this area, it’s possible we get another bounce.
If the selling persists, we could have a test of the $51 to $52 area. Should we test this zone, it would be the lowest price Realty Income stock has traded at since May 2020. In this zone we have the 61.8% retracement and gap-fill level.

Lastly, the 78.6% retracement and 200-month moving average currently sit near the $45 area, which stands out as another potential support zone. Let’s keep an eye on this stock and set your alerts accordingly.

The 2nd stock recommended by this AI is Buckle with a market cap of $1.8 billion. Ticket symbol BKE, Buckle has a 1 year low of $26.50 and a 1 year high of $50.35. The firm's fifty day simple moving average is $41.34 and its 200 day simple moving average is $40.04.

BKE last announced its earnings results on Friday, March 10th. The company reported $1.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.62 by $0.14. Buckle had a net margin of 18.93% and a return on equity of 65.52%. The business had revenue of $401.80 million for the quarter, compared to analyst estimates of $386.36 million. During the same quarter in the previous year, the firm posted $1.69 earnings per share. Buckle's revenue was up 5.5% compared to the same quarter last year.

Buckle also recently announced a quarterly dividend, which will be paid on Friday, April 28th. Investors of record on Friday, April 14th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 4.03%. The ex-dividend date is Thursday, April 13th. Buckle's dividend payout ratio (DPR) is currently 27.29%.

If you’re not familiar with Buckle, BKE engages in retailing of casual apparel, footwear, and accessories for men and women. It offers brands such as BKE, Buckle Black, Red by BKE, Daytrip denim, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root denim, Outpost Makers, Departwest, Reclaim, Nova Industries, and Veece. The company was founded by David Hirschfeld in 1948 and is headquartered in Kearney, NE.

The most economically advantageous stock option promoted by the AI is Crawford and Company. With ticker symbol CRD, Crawford & company is a solid choice for "trend" investing. Here’s why.